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 and pregnant. We currently have one child. My husband (who makes half of what I make) claims 2 on his W4 and married. I claim single with 0 dependents. Is it possible I can claim married and 1 dependent once we have our second child? Should I claim both dependents because I make more?
I just started a new job in the civilian world so this is all kind of new to me. I am single with no dependents, and was wanting some advice on what would be the best for me to claim. As of right now I am claiming 1 in federal and 1 in state. I want the most out of my paycheck but don’t want to owe any money either. what would be the best for me?
Hi Jake,
I suggest taking a look at the IRS Withholding Calculator. It only takes a few minutes to complete and will give you the most appropriate amount of allowances to claim based on the answers you provide.
My son is 17. I will claim him on my taxes. He will make about $4500.00 this year with his part time job. How many exemptions should he claim on his Minnesota W-4?
Hi Chris,
Your son should claim zero allowances on his W-4. Another great reference is the IRS Withholding Calculator. After answering several specific questions, it will provide you with the number of allowances to claim that will be most beneficial to your situation.
I dont get it. My daughter is in the same situation, so shouldnt she put in the highest number of allowances so no taxes are taken out? yet, your answer to Chris is to use the number zero?
Hi Alan,
By claiming a high number of allowances, you are increasing your risk of owing the IRS upon filing. By claiming zero allowances, the maximum amount will be withheld from each paycheck but if too much was withheld throughout the year, a refund will be issued.
Hi,
Same situation, 16 yr old daughter with 1st job, we claim her as a dependent. She lives with us and we pay her expenses. But if she wants less taxes taken out of her paycheck, is it ok for her to claim several allowances? I mean, is it legal since we already claim her?
And thank you
Hi Karen,
Congratulations to your daughter on her first job! You have the right idea. However, she may be making too little to have taxes withheld at all. Take a look with her next time she receives a pay stub. It will show which states, if any, are withholding taxes. If no taxes are being withheld, then she won’t even need to claim any allowances. On the other hand, if taxes are being withheld, then she can increase the amount of allowances being withheld as she sees necessary.
Question about claiming. My wife and I are expecting our first child in October. We get significant money back on on taxes, 10k, and she will be staying home after our little girl arrives. I’d like some advice on claiming to get more money on our paycheck instead of donating it interest free until February, BAsed on what I gather, claiming “3” is our best bet. Thoughts?
Thanks in advance!
Hi Brett,
Congratulations on the new addition!
That is correct – claiming three allowances would have you receive more money each paycheck than if you were to claim one or two allowances.
Keep in mind that the more allowances you claim, the more money you will see each paycheck but the less of a refund you will see at the end of the tax year.
Hello,
I am single, no minor dependents. I always owe and this is after claiming 2 all year. I do not want to owe, nor do I want a refund. I pretty much would like to simply break even.
Would you suggest claiming 1 moving forward?
I feel as if I have never been able to get this right…
Hi Sharon,
Keep in mind that the more allowances you claim, the more each paycheck will be, however the smaller your refund will be (or in some cases, you may even owe money). In your situation, with being single and having no dependents, I would suggest claiming 0 or 1. This will give you a bit of a smaller amount each paycheck but less of a chance of owing money to the government (or even a refund!).