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’ve just been hired and is currently filling out a W-4 form for my new employer. I start working at the end of January 2015. However, currently, I am single and unemployed with no children. Am I supposed to claim 1 or 2?
The W-4 form states:
Enter “1” for yourself if no one else can claim you as a dependent . . . . . . . . . . . . . . . . . . A
B Enter “1” if: {
• You are single and have only one job; or
• You are married, have only one job, and your spouse does not work; or . . .
• Your wages from a second job or your spouse’s wages (or the total of both) are $1,500 or less.}
Hi Monica,
When you start your job, I would suggest claiming one as single with one job and no dependents.
The general rule is that the more allowances you claim, the less withholding you’ll have taken out of your paycheck each pay period. By following the directions on the Personal Allowances Worksheet of your W-4 Form, you will calculate the maximum amount that you should 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 withheld. If you claim a larger amount, you’ll have less withheld. 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.
Hi I am single also head of household I have a daughter but i do not claim her on my taxes I let her mom claim her. I do have expenses with her though about $5000-$8500 a year I work 2 jobs one FT an one PT. What is the best number to claim at both jobs so I can get the most on my check without having to owe anything I really do not care about a refund i rather see more on my check weekly i just do not want to owe anything.
Hi Andrew,
I would 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 each pay period. By following the directions on the Personal Allowances Worksheet of your W-4 Form, you will calculate the maximum amount that you should 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 withheld. If you claim a larger amount, you’ll have less withheld. 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.
In order to do this, 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.
When filling out the personal allowance worksheet line H gives me a 5 for total number of allowances. It then tells me for the employee withholding form to transfer line H for the total number of allowances you are claiming. Do I have to put 5?
I have always done 0 to get the most taken out and the most back at the end of the year. If I claim 5 I fear I would owe money. I recently had a baby and claim single with 1 child. I am also eligible for the Child Tax Credit which is what is bringing by allowances to 5. I just want to make sure if I put 0 it won’t effect claiming my daughter on my taxes.
Thank you for any advice!
Hi Heidi,
By following the directions on the Personal Allowances Worksheet of your W-4 Form, you will calculate the maximum amount that you should claim. However, you can always claim less than that to ensure that enough will be withheld from each paycheck. This will not effect you claiming your daughter when you file your taxes later in the year.
Hi,
I am married and will begin my new job this January 2015. My husband also works and has been at his job for over 3 years. I believe he claims 2 on his tax form. Am I also supposed to claim 2? Or is one person supposed to claim less? Your advice would be greatly appreciated! Thank you!
Hi Vanessa,
When filling out your W-4 form, it is typically most financially beneficial for the spouse with the higher income to claim the majority of the allowances.
Hi!
I understand how to determine how many to claim on my W-4, but what I don’t understand is how the married or married at single tax rate plays into it. Here’s my situation: My husband works 1 full time job and every other year we are allowed to take the child tax credit for his son. As of next week, I will be working 2 part time jobs and I’m trying to figure out how to fill out my new W-4. At my current job I claim 1, married at single rate. If I do the same at this new job, will we be in trouble come tax time? We file jointly. Also, we use our tax returns each year to get us through the summer months when my husband’s hours are fewer, so a decent tax return is not a bad thing for us.
Any advice you could give me would be greatly appreciated.
Thank You,
Kim F.
Hi Kim,
The general rule is that the more allowances you claim, the less withholding you’ll have taken out of your paycheck each pay period. If you claim zero, you’ll have the maximum amount withheld. If you claim a larger amount, you’ll have less withheld. 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.
When you report single as your filing status, more is withheld from each of your paychecks than if you were to report married. However, you do have the option to have the same amount withheld as if you were single but are reporting that you are married. This option is available by checking the box, “Married, but withhold at higher single rate”.
Based on what you have stated above, you will most likely have a refund after filing.