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!
Good morning! I am divorced, single-job, and my ex and I are each claiming one of our twins from now on. How should I be claiming my allowances? I believe I qualify as head of household since its only me and with a salary of around 80K I think I qualify for a child tax credit? I don’t care about a huge return, just really want to avoid owing come springtime next year.
Thanks!
Hi Rob,
If you want to be almost positive that you won’t owe the IRS after filing, you want to claim the lowest amount of allowances on your W-4 as you can manage financially. The lower the amount, the more is withheld from each paycheck. Under your specific circumstances, I recommend claiming 2 allowances as single with one child to claim. You should definitely check into the child tax credit as well. If you are eligible to claim this, it will lower your tax due as well.
Hi, I am single, head of household on my filing status, with one full time job currently making $15 an hour, working 40 – 48 hours a week. I am claiming one dependent (my parent). What would be the correct number of allowance I should have on my W-4. I wish to get as close to my tax liability as possible without having to owing them anything in the end. I much rather have a bigger check than giving the government an interest free loan on my hard earn money. Thank you!
Hi Stewart,
Generally speaking, when completing your W-4 form, you can choose to either pay your taxes spread out throughout the year or pay in one lump sum at the end of the year. You can claim a low amount of allowances which will allow taxes to be withheld throughout the year (typically resulting in a refund after filing) or you can claim a high amount of allowances which gives you more take home pay throughout the year (usually resulting in owing the IRS after filing). In your case, the best bet would be to claim three allowances. Since you said you are going to be filing your taxes as head of household and also claiming one dependent, this option will allow you to take home more money with each check and maybe also receive a refund at the end of the year. If you claim more than three allowances on your W-4, you run the risk of owing the IRS at the end of the year, which I take it is not your goal.
I am single and claim 1 on my taxes next year i will have my daughter which i would than claim 2, however what if i claim 2 and her father wants to use her on his taxes can we do that?
Hi Krystal,
Yes, you can do that but you if you claim 2 and your child’s father ends up claiming her on his tax return, you could end up having tax due (rather than a tax refund). To be safe, I would claim 1.
i have 2jobs.
i made 35K from the 1st job and 7K on the second one.
so total income from both jobs is 42K for the year of 2014.
i have always put exempt 0 on my w-4 my whole work life. why do i feel that i will owe 4K this year?
i did the free tax calculations online just to see if its possible to get a refund but i says i will owe 4K, i have not filed my taxes because i am afraid there might be some errors on my w-2’s.
im confused as hell.
i notice that on my w-s the box 2 is empty and my last paystub on my first job says YTD 2K on federal taxes withholding and 0 on the second job.
please help.
do i keep filling exempt 0 or switch to exempt 1??? i would like to get the biggest refund every tax season. i keep getting different answers. im really confused
Hi there,
Taxes and W4 forms can often be confusing! The reason you owe so much tax is because you reported you were exempt from tax on your W-4. Entering that you are exempt is a way to tell your employer that you do not have to pay tax and that they should not withhold taxes from your paychecks. Students can claim “exempt” on their W-4 form. Unless you were a student or meet other criteria to claim exempt, you still need to pay taxes on your income. This explains why your tax bill is so high.
I would suggest filling our a new W-4 as soon as possible. Your employer will then start to withhold tax from your paychecks. This means you will not be forced to pay the tax when filing your taxes. You should probably claim 1 on your new W-4 form.
Hi; would claiming 0 or 1 be better for a young person with only entry level job experience? Would one make it more likely for me to have to pay more later? Also, if my step-parents try to claim me, does that force me to claim 0?
Thanks
Hi Jacob,
If you would like larger paychecks and a smaller tax refund, I would suggest claiming 1. If you claim more than 1, you could end up with a tax bill to pay when filing your taxes.