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 claiming one child. I have been claiming 1 and married for 7 months. Just realized that I needed to change my status to single since my divorce went through in April. At this point what should I be claiming?
Hi Laura,
Based on what you explained above, it seems safe to assume that you will be the parent claiming your child on your tax return. That being said, you will most likely want to claim two allowances on your W-4 form. You can claim less allowances to ensure enough of your income is being withheld to cover taxes due to the IRS. This will typically result in a refund issued to you after filing.
I am single with no dependents and one full time job. My income tax summary says I have 2 claimed allowances for federal and 1 claimed allowance for state- is this correct or should i change either of these numbers? When filling out my taxes where do I put this information in to make sure I am filing my taxes correctly? Because it says 2 claimed allowances for federal on my income tax summary, under personal info do I claim that I have one dependent even though I have no children?
Hi Nicole,
The first thing to keep in mind about your W-4 form is that it serves as an estimate to let your employer know how much of your paycheck you are allowing to be withheld to cover the cost of taxes you owe to the IRS. The more allowances you claim on your W-4, the lower the amount of income will be withheld from your paychecks. So you will see more money each paycheck but will probably owe money to the IRS after filing. The less allowances you claim on your W-4, the more income will be withheld to cover taxes you owe. This tends to result in the IRS issuing a refund because too much of your income was withheld throughout the year.
Now for the actual W-4 form, notice that you ONLY need to submit the bottom portion to your employer. The personal allowances worksheet above the dotted line is solely for your own reference. In your tax situation that you described above, you would benefit the most by claiming either zero or one allowance. If you claim zero, then the maximum amount is being withheld from your paycheck to cover taxes. If you claim one allowance, you will see a bit more out of pocket per pay period but less of a refund come tax time. You can update your W-4 with your employer as soon as possible.
Keep in mind that you never want to claim a dependent that doesn’t exist or that you are not eligible to claim. The IRS will see this as fraud and you will end up owing the money back along with penalty fees. If you have any other questions, feel free to reach out to one of our tax professionals with our free phone, live chat and email support.
I am a student in college living with my parents, I’ll be working over the summer and times I’m back home. I claimed exempt on my w-2 and on my paycheck it shows 0 allowances on state and federal and I have federal income, social security, Medicare, and state income taxes taken out of my paychec, is this right?
Hi Evan,
Exempt means that your employer does not withhold any federal income tax from your paychecks. As long as you meet the guidelines listed on the W-4 form instructions, none of your income should be withheld from your paychecks. I suggest speaking with your pay roll department as soon as possible. You can update your W-4 form and have it be effective immediately.
I am single, have one job with 50k salary and 26k bonus this year. I live with my girlfriend and fully support her financially (living, school, etc). How many allowances should I claim? Should I file as head of household? Put her as a dependent?
Hi Tim,
You may be able to claim your girlfriend as a dependent if she meets the requirements as a “qualifying relative“. However, according to the IRS, you will not be able to claim Head of Household as she is not related to you as one of the following:
1. Your child, stepchild, foster child, or a descendant of any of them
2. Your brother, sister, half brother, half sister, stepbrother, or stepsister
3. Your father, mother, grandparent, or other direct ancestor, but not foster parent
4. Your stepfather or stepmother
5. A son or daughter of your brother or sister
6. A son or daughter of your half brother or half sister
7. A brother or sister of your father or mother
8. Your son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law
You can always refer to the in-depth website page on the IRS site HERE for more information on this subject.
Hi! I’m a college student working part-time year round, and I was wondering how many allowances to put down? My mom still claims me as a dependent, and I do not live with her. The IRS calculator said I should put down two, but I thought I’d ask.
Hi Tressa,
Since you are working part time, are single with no dependents and your mom will be claiming you as a dependent, I would actually suggest claiming zero allowances on your W-4 form. This will ensure, if you make above a certain amount, that enough will be withheld to cover the tax you owe to the IRS throughout the year. You could even file a tax return and receive a refund come tax time!