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 married with thee kids. Last year,I did not work. I just started working and My husband claims everyone. From the previous statement: My husband should claim me and my three kids and on my work W-4 I should claim 1 for myself and 0 for my husband (cause he’s working) and 0 for my kids? On the “G” line I would write 3 for each child? Its very confusing and feels extremely ultimate, although it may not be. haha
Hi Brittany,
Filling out your W-4 is more of an estimate for the amount to be withheld throughout the year.
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 instructions on the Personal Allowances Worksheet of your W-4 Form, you will calculate the maximum amount that you should claim (Keep in mind that this worksheet will not be given to your employer or the IRS). 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.
I am married and joined job last yeas March. My wife is not yet any US. I filed as married. But while filing for refunds how to should I file? Will there be anything extra I have to do since I joined mid year into my first job?
Hi Amitosh,
You will file your taxes with the filing status that you are on the last day of the year. Just be sure to update your pay roll department and the IRS with any major life changes (such as marriage, an address change, etc.).
I am married with 3 kids. I currently have 0 on my W-4. Should I change it to a 2 or 3? My spouse works but my salary is much more. Should I have my spouse select 0 on w-4 and I select another number? This way I could receive a biggie paycheck.
Hi KM,
I typically suggest that the spouse with the higher income claim the majority on their W4. This will be most financially beneficial.
I have one son but he doesn’t stay with me but I pay child support. Can I still put him down on my marital status. Instead of me calming 1. Can I put 2 people me and my son. Even though he don’t live with me but I pay child support.
Hi Howard,
What you claim on your W-4 does not need to reflect what you file on your taxes.
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 instructions on the Personal Allowances Worksheet of your W-4 Form, you will calculate the maximum amount that you should claim (Keep in mind that this worksheet will not be given to your employer or the IRS). 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 a single teacher and I just received my Master Sheet explaining my pay for the last year. I live on my own. For some reason I claimed 2 exemptions for Federal and State. Is that a bad idea- to claim 2 even though I am single and live by myself? Should I contact my employer and change it to 1, or even 0? What are the pros and cons?
Thanks so much.
Hi Zach,
I would consider claiming one on your W-4 as single with one source of income.
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 instructions on the Personal Allowances Worksheet of your W-4 Form, you will calculate the maximum amount that you should claim (Keep in mind that this worksheet will not be given to your employer or the IRS). 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.