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!
Hi, I am single, living on my own with one full time job and I am 23 years old. I lived with my mom from January-August 2014 and even though I paid my own bills while living there, she will probably still claim me as a dependent. Therefore, what do I put on page 1 “Allowance for Yourself”, 0 or 1? I don’t want to be claimed since I am not living with her but I don’t know what the technical rules are if I claim I am not a dependent and she does claim me as a dependent.
Thanks!
Hi Abby,
No one can claim you as a dependent without that person’s consent. You can claim yourself and if your mom also does, then her return will most likely be rejected.
Single mom with 1 kid, head of household for a house, full time worker and student. I could use more out of my paycheck but want to make sure I get money at tax time. What should I claim?
Hi Jess,
I suggest claiming one or two 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.
I also suggest taking 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.
Hello I’m single, living with girlfriend and have a child. My girlfriend does not work and I’m also filing as head of household. How many allowances should I claim?
Hi Mike,
I suggest claiming no more than three.
Take a look at the IRS Withholding Calculator as well. This will only take a few minutes to complete and will give you the most beneficial amount to claim so that you reach that break even point at the end of the year.
Hello I’m married but separated. I’ve always file my taxes as head of household and single I have one child and my mom as a Dependant. What number of allowances should I include in my w-4. I’m also going to start a part time job next week does this have any effect when I’m filing out this form? I need them to take as little money as possible from me so I could get a decent pay check what do you suggest?
Hi Paula,
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.
I also suggest taking 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.
When it comes to filling out a W-4 for two separate jobs, it will typically be most beneficial to claim the majority (or all) of your allowances at the higher paying job.
Hi. I’m paid monthly. Gross monthly earnings are $4084, federal taxable earnings are $3540. I just looked at one of my pay stubs and realized I’m only having $152 withheld for federal tax and $11 withheld for CA state tax. These figures seem bizarrely low to me.
I’ve claimed four allowances because I have a spouse and two children. Have the four allowances generated this very low level of withholding?
My husband also works. I assume we should be splitting the four allowances between us, not both claiming four. So, if I claim four, he claims zero … is that correct?
But even with him claiming zero, my withholding seems alarmingly low! Advice?
Thanks for your help.
Hi Alex,
That is correct. Since you are claiming four on your W-4 form, less is being withheld from each paycheck. Also, you are your spouse should not each be claiming allowances. You can either split them or one spouse claim them all while the other claims none.
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.
I also suggest taking 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.
Thanks for the advice! I appreciate it. I’m still surprised that four allowances create such a huge reduction in withholding. I think I’ll scale back on allowances.