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!
Hi i am getting paid 11.50 a hour and i do have alot of overtime i get paid biweekly and make 88 to 96 hours i have 2 dependents is that ok or should i only claim one
Hi Luz,
If you plan on claiming both dependents on your tax return come time to file, then claiming two additional allowances on your W-4 would be beneficial to you.
I’m 24, single, no dependents, have a good job, and live in Texas where there are no state taxes.
With that said, I’m head of household, have a mortgage on condo I just bought (great area in Austin, so high property taxes and decent amount of interest paid per month).
Last year, when I made less money and didn’t have a mortgage, I claimed a 0 and had a refund of about $1600.
Though I have no dependents and am single, I think the amount I pay in property taxes and interest on my new property is going to be a big deduction that I can make this yea when I’m doing my taxes. I also contribute 7% to my 401k each paycheck so that money is not taxed.
Based on that, should I file a 1, 2, or 3? I want to decrease taxes per paycheck and not have to owe money at the end of the year. I think I could definitely achieve this with a 1 or 2 (and maybe still get a slight refund), but a 3 may be pushing it… thoughts? Thanks in advance.
Hi Austin,
The first thing that I suggest looking into is if you are eligible to file as head of household. I say this because you need to be “supporting a qualifying individual or dependent” according to the IRS and you mentioned above that you are single with no dependents. That being said, if you DO in fact qualify as head of household, you would benefit most financially by claiming two allowances on your W-4 form. If you do not qualify, claiming one allowance is your best bet. Either option will allow you to see more take-home income with each paycheck than if you were to continue claiming zero allowances.
I recently married, and we are keeping our finances separate for the time being. My husband is the legal guardian of his nephew and provides for him financially, while I am providing financially for our newborn. I’m not sure how to file or claim allowances.
Hi Leah,
Based on the information you provided above, you may want to consider filing your taxes as married filing separately. Couples will do that under circumstances similar to yours where finances are independent to each spouse and there are dependent children involved that are not the responsibility of both spouses. By filing separately, this will allow you to claim your newborn as a dependent while your husband can claim his nephew as a dependent.
When it comes to completing your W-4 form, you and your husband may want to each claim 2 allowances. With that in mind, you can claim less if you prefer more to be withheld each payperiod and receive a larger refund come tax time. Claim more allowances if you would like to receive more out of each paycheck and possibly owe the IRS after filing.
I am filling out my NYS w-4 for a new part time job I’m starting. I am single, no kids, no husband. This new pt job will be my 3rd job. Should I file 0 just to be safe? I believe I filed 1 on both of my other job w-4. I don’t want to end up paying money in April. I just finished college this past may and have to start paying my loans… I’d rather not have to worry about making a big tax payment!
Hi Sara,
Congratulations on graduating!
That is correct. You will benefit most by claiming zero on your most recent job’s W-4 form. Many taxpayers in similar situations claim one allowance at the highest paying job and claim zero allowances at the other jobs.
I am Married, file a joint tax return with my wife and have one child. We pay significant amount to child care expenses that come out of my pretax income. I just started a new job and file a 3 on my W-4 and 2 on my W-2, but b/c I have my take home pay reduced thru pretax deductions and my wife has her income taxed at the higher rate would it be better for me to have a 1 on my W-4 and a 0 on my W-2 so that I don’t pay in so much during the year?
Thanks!
Hi JSE,
I am slightly confused by your question as the W-4 form is the document you complete with your employer at the start of employment. The W-2 form is the document you receive at the end of the financial year so that you can use that information the prepare your tax return. You can only control the amount of allowances claimed on your W-4 form.