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 no kids. I would like a bigger paycheck. What do I claim if I just want some taxes and I’m willing to pay taxes around tax return time? Thanks!
Hi Justin,
I suggest claiming one. 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 am single, with one dependent and I file Head of Household. You suggest filing 3 to be sure that enough but not too much tax is taken out but what lines on the W-4 should I put the numbers on? What should I put for lines A thru H?
Hi Cathy,
If you take a look at a copy of a W-4 form, you will notice that the top portion is solely a worksheet to work out your allowances. It is for your personal records and is not required to be given to your employer. In fact, you do not even need to enter anything in the top portion since the only part given to your employer is below the dotted line.
Hi,
I am single (divorced) and only 1 of my children still lives at home. Since she works, and is not a full-time student, can I still claim her as a dependent? She works for minimum wage, 20 hours per week and files 0. But, I pay for her health ins, car ins, all food and medical expenses, etc. She will be turning 20 this December.
Also, I’ve been claiming HOH with 9 exemptions for 12 years and always got a huge refund. Now, my adjustable mortgage interest rate has dropped, and along with it, so has my huge deduction! How many exemptions should I change it to? I do NOT want to owe anything! Thanks!!
Hi Vicki,
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 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 have been at my job now for about 10 months and I claim one,but I also recently had a child with my fiance who also has a child from a previous relationship,I would like to recieve more money in my checks and still have a nice enough tax return as well.I feel like since my fiance makes more money and may be getting a bigger tax return maybe she should claim both childrwn and head of household,or would we both have about the same size return if we claim one each?So I guess what Im asking is how many dependents should i claim for work,and should we each claim a child or one claim both who is also claiming head of household that makes more?
Hi Joseph,
It is typically more beneficial for the spouse earning the higher income to claim the majority of dependents. I would suggest that you stick with claiming one or two.
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 am single, can claim head of household, and have one dependent. What should I claim on my W-4?
Hi Evan,
I suggest claiming no more than two on your W-4. Although you can claim more, this may result in owing the IRS at the end of the year.