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!
Hello thank you for responding back,
So my husband works we usually file jointly we have one child what is the correct way to get a bigger refund ? Is there a big difference between filing head of household and filing jointly ? What would you suggest ?
Hi Jessie,
As a married couple, you have two filing options – married filing jointly or married filing separately. It is typically most financially beneficial for spouses to file jointly. Filing jointly allows for more tax credits. There are only a few common reasons why a married couple would file separately (ie: one spouse chooses to itemize their deductions while the other chooses to use the standard deduction).
As a married couple, filing as head of household is not an option. This filing status is only for single people who have cared for a dependent for more than 50 percent of the year and meet other IRS criteria for this status.
Hey,
I claimed 4 allowances on my tax refund, I make almost 30,000 annually. I am single, have 1 child, Head of household, and single with job. I would like to have a decent refund. Would I owe a lot of money for my tax refund? Is there any advice you can give me please? How much would I owe? Thank you for your help!
Hi Nelly,
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 am a single mom of a 17yo and a 14 yo. I work three jobs. Two of them are part time and do not withhold taxes or social security, and do not offer benefits. My full time job does. I got hit with a huge tax bill last year because I didn’t withhold enough to cover the two jobs’ earnings and don’t want to make that mistake again. I have been withholding 2 from Federal and State, but my paycheck is nearly cut in half every week.
Am I withholding enough, or too much? I can’t afford another $5k debt to the IRS, and I need to make sure I have enough to feed the kids. Please advise.
Hi Kelly,
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.
Hello, I am a single male with no dependents. I need help. My first job was this year around may, when I filled out my W4 form I had two exemptions for both state and federal. That job lasted two months. Then my next job started in August and I claimed zero exemptions for both federal and state. That job lasted a month and a half. Will I have to pay back? The first job we got paid every two weeks, the next was every week.
Hi Japel,
There are several other factors that come into play including your income amount. From what you have stated above, it does not seem as if you will owe the IRS much at all considering that the amount that they have withheld was not over a substantial amount of time to accumulate a large sum.
i just started a commission only job I claimed exempt but I before I did claim 1 I think I should claim more than one. What do you think I should claim cause commission only isn’t gonna be the same amount every month.
Hi Irena,
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.