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 with a full time job. No dependents. I have always claimed “0” however for the next two months I would like to get more back on my paycheck. 1. Should I claim 2 or 1? And 2. Will this hurt my refund too badly if I do this? Thanks for your help!
Hi KJ,
I suggest claiming one when filing single with one job. Claiming two may cause you to owe the IRS after filing taxes so just keep that in mind when updating your W-4 form.
I’m married, we don’t have kids. I moved from Mexico and my wife will be here around January, she will not be working in US. I want a big paycheck and pay the right amount of taxes. I have been working for almost a month and I think my withholding is too much.
I get paid bi-weekly $2,692.00 and the federal income tax is 4$92.07. I have been working for almost a month and I think my withholding is too much.
I’m starting a life here so is it better to pay more taxes over the months and wait for a tax refund or pay less taxes and owe the IRS and pay at the end of the tax year?
Should I claim more allowances?
Thanks
Hi Alejandro,
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.
I’m single and still claimed as a dependent. I have one job with 0 allowances for fed and state, and I started another job about a month ago and put 0 for both as well. I noticed taxes aren’t being withheld for state at my new job. Did I put the wrong number or should I just elect to withhold more? Thanks
Oh and they are both part-time jobs
Hi Jay,
If you are not making above a certain income amount, the IRS will not withhold taxes. You mentioned in a following comment that both are part-time jobs. This may be why you are not making over a certain amount for each job to withhold taxes. However, since you have not mentioned your income, I cannot be positive so I suggest speaking with each pay roll department to be sure that this has not been done in error.
I live with my gf and we just had a baby Nov 8th, my gf is claiming my daughter and we file taxes seperately. I have a full time job but I start a part time job to do while my gf isn’t working on maternity leave. What exactly would I claim on my new work form?
I live in an apartment by the way so no house taxes or anything else.
Hi Chad,
I suggest claiming no more than two on the higher paying income W-4 form.
Hi, I started a new job Nov 1 and am paid twice a month. Salary is $70,000. I am married filing joint. My wife works as a sub teacher but she works only from time to time and earns little. I have 2 children ages 14 and 11. I am thinking claiming 3 or 4? Which would be best? thank you.
Hi Mike,
You could technically claim either three or four on your W-4 form. However, in your case, it would depend on preference.
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.