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!
I am a mother of one, can you please tell me what my number of allowances should be on W-4.
Thanks so much
Hi Sil,
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.
Hi,
I’m trying to fill out my W4 for new employment and can’t figure out how many allowances I should claim. I am not claimed as a dependent on anyone else’s taxes and I just got married. My husband’s income is about 1500 or less and we aren’t sure if in April of 2015 we should do joint taxes or separately? Someone Please Help!
Hi Rebecca,
I suggest claiming one and your husband claiming zero or one.
Also, I always suggest filing jointly unless you are aware of a reason not to. It is almost always more financially beneficial.
I am debating when is the best time to marry and use the tax code to my benefit. My fiance and I together make $70K, working at full time jobs. Would it make any difference in our taxes if we married in December of 2014 rather than in May of 2015? Would our withholding change and would we file married together or married separate? We each claim 1 allowance each now, and usually get some money back.
Hi Laura,
According to the IRS, if you were married on December 31, you are considered married all year.
When it comes to filing, I always suggest that spouses file jointly as it is more financially beneficial (unless of course you have a specific reason to file separately).
I also suggest that you both each claim one on your W-4 forms.
Not sure what my tax status would be or what Allowances to claim:
Single Income (Spouse does not work)
2 children
Does this mean I am Head of House? Can I claim 4 Allowances?
Any advice is appreciated!
Hi Kay,
You CAN claim four, however, keep in mind that claiming a higher amount means that less is being withheld from your paycheck. Also, you can generally ONLY claim Head of Household on your tax return if you are unmarried and pay more than 50% of the costs keeping up a home for yourself and your dependents. From what you said above, you only fit one of the criteria.
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.
I’m a single person and just started my first job of the year . Federal and state taxes weren’t being deducted. I don’t know if I fill it out wrong because I always put 0 . Is this correct? Should I change it to 1?
Hi Mike,
You may want to speak with your pay roll department. Claiming zero on your W-4 form means that the maximum is being withheld from your paycheck for taxes. It is possible that you aren’t earning enough of an income for them to be withholding from your paycheck but your pay roll department will be able to shed some light on this.