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 single with one job with no kids. So I claim myself so i put 1 in section A and 1 and section B. Total in H is 2. Do I not fill out the second page
Hi Iysha,
You only need to give the bottom half of the first page to your employer.
also what should my huspand put on his? he just works one Full time job. just so we dont end up paying at the end.
Hi Maria,
I suggest that your husband also claim one.
I Just got married June 14th. 2014. I have two jobs one Full time other is just 8 hrs. a week. NO kids. What number should i put ?? or claim.
Hi Maria,
I suggest claiming one allowance based on the information you have provided.
Single with 1 job and 1 child. How many allowances should I take? I would like less taxes taken out of my paycheck but don’t want to owe at end of yeah. thank you so much!
Hi LJ,
I suggest claiming two allowances.
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 i just got a job. My husband has been working and he hasn’t changed his w-4 since he was single so his marital status appears single on his paycheck so I assume his allowance on his w-4 is 0 or 1. We have two children together and we have been filing our two children and me as my husband’s dependants on his tax return. What number should i put on my w-4 since i got a job?
Hi Sue,
It is typically most beneficial for the spouse earning the higher income to claim the majority of the allowances on their W-4 form. For example, if you earn the higher income, I suggest that you claim three on your W-4 and your husband claim one on his 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 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.
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.
My scenario is similar. I just got married 2 months ago, and just got a new job a month ago. I claimed 1 on my new W-4. My husband has not changed his status since before he was married, so I believe he is claiming 0 or 1. Am I correct in claiming 1? Or should I be claiming 2?
Hi Brigid,
There isn’t a clear-cut right or wrong when it comes to how many allowances to claim on your W-4. It IS important to update your filing status to reflect the filing status you will be reporting on your tax return. The amount of allowances you claim controls how much of your income per paycheck will be withheld to cover taxes owed to the IRS for the year. The more allowances you claim, the less is withheld. The less allowances you claim, the more is withheld. If too much is withheld, you’ll be issued a refund. If too little is withheld, you’ll have a tax bill after filing. The IRS gives you some leeway when choosing how you’ll pay the IRS; throughout the year or in lump sum after filing.