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!
Hello-
Single dad here and I have two jobs, one full time, one part time, in both I did put 0 allowances. is that right? Just want to make sure I get refund every year. Or maybe put 1 allowance in one job? Also have 2 gals but been claim by mother, no child support here but pay car insurance and other expenses during the year. How to get child credits on this one if available. Thanks
Hi Peter,
Claiming zero allowances allows for the maximum amount to be withheld from your paychecks to cover taxes owed to the IRS. You can claim a higher amount of allowances but you may be in jeopardy of wing taxes to the IRS after filing for the year. Unfortunately, a dependent can only be claimed on one tax return per year. The only way that you would be able to claim your daughters as dependents is if their mother does not claim them on her tax return.
I am single. I have one job. I get a lot of taxes taken out of my check during the year and my return is not that large at the end of the year. I gross around $100,000. How many allowances should I claim in order to get less taxes taken out during the year and still get a refund at the end of the year? I currently claim one allowance.
Hi Jay,
Claiming 2 allowances instead of 1 will allow you to have less taxes withheld throughout the year but will also decrease the amount of your issued refund after filing.
I have a full time job right now and I had claim 0 so by the end of the year I get more back plus claiming my son for the end of the year. If I end having a part-time job should I claim 2 on it or 0 but 0 will take so much out of my paycheck, what is the best move I should do?
Hi Mary,
By claiming more allowances, you are allowing less to be withheld from your paychecks. This will result in less of a refund after filing. If you continue to claim zero allowances, you are correct in that you will have the maximum amount withheld from your paychecks. This will result in the IRS issuing you a higher refund. The choice is yours if you would rather pay the IRS in increments throughout the year or in one lump sum after filing.
Hi. My husband and I are expecting in October. I am filling out a new W4, which was sent to me by the company that handles my company’s maternity leave. Do I put a 1 under ‘enter number of depends you will claim on your tax return?’ since I am expecting. Also, the child tax credit, if you make between a certain amount, you enter a 2. Would I go ahead and put a 2? So my total with holdings would be 4?
I am trying not to ‘owe’ come tax time.
Also, I would need to fill out the two-earners/multiple jobs worksheet as well, correct? Since my husband and I both work.
Thanks!
Alison
Hi Alison,
Congratulations to you and your husband!
I do suggest updating your W-4 form to reflect claiming your newborn as a dependent. The worksheets on your W-4 form are solely for your reference and to help you calculate the maximum amount of allowances you should be claiming. Your employer is only required to ask for the bottom portion of Page 1 (below the dotted line). Line H gives an estimate of how much of your paycheck can be withheld to cover the taxes you owe to the IRS. That being said, claiming 4 allowances is not required of you. Claiming 4 will allow you to have more take-home pay but possibly owe the IRS after filing. If you claim 2 or 3 allowances, you will have a bit more withheld from each paycheck but will owe less (or be issued a refund) after filing.
By completing the Two-Earners Worksheet, you are calculating an additional amount to be withheld from each of your paychecks to cover additional tax that you may owe to the IRS. Again, this also is not required of you to complete but may be helpful for you to see your tax owed based on your tax situation.
Hey ,
I’m married with one child on my w-4 I put 2 allowances my husband just start working but isn’t sure how many allowances should he put and I’m not sure if I should change mine on the W-4 (also because we are married do we have to file jointly?) please help I don’t want to end up owning the IRS
Hi Kia,
Taxes can seem overwhelming. As a married couple, your best bet is to file a joint tax return. It tends to be the most financially beneficial for couples without complicated tax situations. Now, when it comes to your W-4 form, the higher the amount of allowances you claim, the lower the amount withheld from each paycheck will be. Claiming a high amount of allowances lets you have more money (since less is being withheld to cover taxes) each paycheck but tends to result in a tax bill from the IRS after filing. Claiming a low amount of allowances allows your employer to withhold more of your paycheck to cover taxes and tends to result in a refund from the IRS or less of a tax due bill.
When completing your W-4 form, you and your spouse should decide who will claim the allowance for your child. Typically, the spouse with the higher income will claim the majority of allowances on their W-4 form.