The last thing you want to do is frantically run up to your boss asking “How many allowances do I claim on my W-4?”.
Being aware of the number of allowances you are claiming on a Form W-4 [Employee’s Withholding Allowance Certificate] is important for a variety of reasons. Most importantly, the number of allowances you claim on a W-4 determines the following;
- how much tax will be taken from your income (aka the withholding amount)
- the size of your tax refund
Steps to filling out a W-4
You’ll need to follow four simple steps when filling out your W-4 Form:
- Fill out your personal information (Name, Date of Birth, Address, Marital Status)
- Know the number of personal and dependency exemptions you are claiming on your tax return.
- Based on the number from step 2, use that number to help determine your number of allowances.
- Don’t forget to sign the W-4 and turn it into your employer!
The allowances you claim while filling out a W-4 if you are single will differ from the allowances you claim if you are married or have kids.
Claiming zero allowances
- The maximum amount of tax is withheld. Meaning, when it comes time to file your tax return you will most likely receive a refund.
- You’re being claimed as a dependent on someone else’s tax return.
Claiming one allowance (ideal if you are single with one job)
- You’re single and have one job. Claiming one allowance will most likely result in a refund when you file your taxes.
Claiming two allowances
- You are single. Claiming two allowances will get you close to your tax liability but may result in tax due when filing your taxes.
- You’re single and work more than one job. Claim one allowance at each job or two allowances at one job and zero at the other.
- You’re married.
Claiming three allowances
- You are married with one child.
Claiming additional allowances
- File as head of household if you are eligible. You are able to claim additional allowances.
- You had at least $2,000 of child or dependent care expenses that you plan on claiming credit
- You’re eligible to claim the Child Tax Credit
Can I fill out a new W-4 form?
Yes, employees can submit a new W-4 form to their employee at any time during their employment. Have you recently started a second job, had a baby, or tied the knot? Life changes such as these should encourage you to update your W-4 withholding.
A great tool to help you while filling out a W-4 is the IRS Withholding Calculator, located on the IRS website.
Claiming zero allowances means less take home pay, but a bigger tax refund during tax season.
The number you report on a W-4 will ultimately determine your take home pay and your tax refund. Don’t write down any number. Take the few extra minutes to really assess your situation and fill in the W-4 accordingly. By doing so you’re less likely find yourself in a difficult financial situation.
Then, when you’re ready to file your taxes, you’ll have a heads up on whether or not you’ll be receiving a tax refund!
Okay I’m a single mother of 5,I just realized that no federal is being talking out I work at McDonald’s I also pay 240 a month for my daughter whom does not live with me I’m wondering if I will even get a refund back if I do claim tax’s however I filled with 4, dependence I was told that I didn’t make enough and because I pay child support it kinda worked in my favor I just wanna know why is it like that I’m in need of a blessing and don’t wanna be out because of cumstances please help
Hi Ms. Harris,
Typically, people have a portion of their paycheck withheld to pay the federal income tax and, in some cases, a state tax as well. After deductions and tax credits are calculated, the amount paid (through withholdings throughout the year) often exceeds the actual amount owed. This results in a tax refund. If you didn’t have any federal taxes withheld from your paycheck you may still get a refund, but there is a chance you could owe taxes to the IRS instead.
Hi, So I am a single man, I Essentially i wanted to change my dependencies so I receive more up front, but do not end up owing at the end of the year. I am unsure of the number of dependencies and allowances I should put any recommendations?
Hi Mike,
I suggest claiming one on your W-4 as filing single with (I’m assuming) one job.
Question-
I live with my boyfriend, we both work one job each and file taxes seperately. My boss told me to do 3 allowances so i had more coming in my paycheck and figured i should be fine with not owing at the time of taxes. Did i set myself up to owe by listening? I look to earn roughly 30,000 for the year.
Hi Nick,
If you are filing as single with one job, I would suggest claiming one on your W-4.
The general rule is that the more allowances you claim, the less withholding you’ll have taken out of your paycheck. By following the directions on the Personal Allowances Worksheet of your W-4, you will calculate the maximum amount that you can claim. However, you can always claim less than that to ensure that enough will be withheld from each paycheck. If you claim zero, you’ll have the maximum amount taken out. If you claim a larger number, you’ll have less taken out. The absolute ideal scenario is to have your tax liability (or refund) at the end of the year be as close to zero as possible.
However, take a look at the IRS Withholding Calculator. It only takes a few minutes to complete and will give you the most accurate amount of allowances to claim in order to reach that break-even point at the end of the tax year.
I have a new job and on the W4 sheet it’s asking for allowances is that the same as my dependants? When I do taxes I will put my 2 sons who will be 2 years and 5 months then, do I put them and myself as the allowances on the form.I will file as head of household and single because I’m not married but me and my girlfriend live together . or what would I put as my allowances
Hi Adalberto,
When looking at a W-4 form, you will notice the Personal Allowances Worksheet in the middle of the first page. This helps you to determine the maximum amount of allowances you can claim. You will notice that for line ‘D’ you are asked to enter how many dependents you will be claiming on your tax return. Also, on line ‘E’, you are asked to enter a ‘1’ if you are claiming Head of Household. You can follow the directions for each line and then record the sum of lines A-G on line H. That amount can then be carried down and recorded on line 5.
Keep in mind that once you have followed the directions on your W-4 and found the maximum amount of allowances, you can always claim less to make sure that enough is being withheld from each paycheck.
The general rule is that the more allowances you claim, the less withholding you’ll have taken out of your paycheck. By following the directions on the Personal Allowances Worksheet of your W-4, you will calculate the maximum amount that you can claim. However, you can always claim less than that to ensure that enough will be withheld from each paycheck. If you claim zero, you’ll have the maximum amount taken out. If you claim a larger number, you’ll have less taken out. The absolute ideal scenario is to have your tax liability (or refund) at the end of the year be as close to zero as possible.
Hi,
I am married with no children and we have continued to both fill in our W4s as single, no allowances since marriage but file jointly at tax time. However, we have reached a point where we need to have more money during the year vs. during tax return season. I am the higher earner (I make around 17-20k higher than my husband a year) but I believe we always file with him as head of household. What should we both claim, if anything, to make our take home pay a little better on a weekly basis?
Hi Anne,
Since you are both currently claiming zero, I suggest that you each update your W4s to claiming one and married. This will allow for a bit more in each paycheck without owing at the end of the year.