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. International student on F1 visa. Working in NYC.
What option should I put in W4 ?
Right now it is,
A- 1 [No one can claim me]
B – 1 [ Single]
D- 1 [House Hold]
In total 3 allowance in “Personal Allowance box” in First section of W4 NYC.
Do I need to fill up anything in second page ?
Am I eligible to get all tax back ? means exempt ?
Option “7” in “Employee’s Withholding Allowance Certificate”
please advice.
Check w4 by this link : http://www.irs.gov/pub/irs-pdf/fw4.pdf
Thank you.
Swapnil
Hi Swapnil,
Unfortunately, the structure of the W-4 form generally caters to U.S. citizens. This makes it that much more confusing for an international student to complete. There are restrictions for non-residents when claiming allowances. You can read them all here but I’ll explain further as well. Unless you are a resident of Canada, Mexico, Japan, the Republic of Korea, or India, you can only claim one allowance according to the IRS. Do not worry about completing the specific worksheets on the W-4. These are for your personal records and do not need to be submitted to your employer. You will only need to place a ‘1’ on line H of the W-4 and complete the other personal information below the dotted line for your employer.
What will happen if I claim 2 allowances as an international student? I know less money will be withheld and I may end up with a liability. Are there legal consequences. Is the IRS instruction of claiming 1 allowance a recommendation or is it a must?
You can use the IRS with holding calculator to help you determine how many allowances you should claim. Click here to try the IRS Withholding Calculator.
I am head of household, single mom with 2 kids, I work 2 jobs 1 full time and 1 part time. I want a decent pay and a decent refund at the end of the year, but i not want to payback any taxes back. What is my best route?
Hi Lisa,
Based on your preference above, I suggest claiming zero allowances on your part-time W-4 form and 2 allowances on your full-time W-4 form. Keep in mind that you can adjust and update your W-4 form at any time if you feel that too much is being withheld from your paychecks and it will go into effect for the following pay period. The suggestion I have made will ensure that enough is being withheld throughout the year so that you do not owe the IRS come tax time (based on your tax situation explained above).
Would someone be able to claim head of household if they are single with no children? I’m trying to understand the meaning of claiming one, entering one for single and only one job, and the head of household. I’ve always claimed 0, because its what someone told me to do a very long time ago.
And also how many allowances I would claim?
Hi Tiffany,
You can claim the head of household filing status if you have met all of the following criteria:
– you were unmarried as of December 31 and
– you paid over half the cost to run your home in 2014 (rent, mortgage, utilities, etc.) and
– you supported a qualifying person.
When it comes to your W-4, you should answer as honestly as possible so that it coincides with what you will be entering on your tax return comes time to file. That being said, you DO have a bit of leeway with this. You mentioned that you have been claiming zero ever since you’ve been employed. That simply means that your employer(s) have been withholding the maximum amount allowed from your paychecks to cover taxes owed to the IRS. Have you been receiving a refund over the past years you’ve been employed? If so, that is because too much has been withheld to cover the taxes owed so you were issued that difference back.
A basic rule to follow when if comes to completing your W-4 is to claim one allowance for yourself and then an additional allowance for each dependent you will be claiming on your tax return. If you DO meet the criteria to claim head of household, then claim one additional allowance as well. Keep in mind that you are only responsible to submit the bottom portion of the W-4 to your employer so don’t worry too much about completing that personal allowances worksheet to the tee (it is soley for your own reference).
Hello, I am married with 1 child. I need as much money during the year but absolutely do not want to pay anything come April. I was advised to file as single with one allowance. Can I do this even if i am married?
Hi Allan,
It is highly recommended that you complete your W-4 as honestly as possible (especially if you do not want to end up owing the IRS after filing). This is not solely for karma’s sake as you want to have your W-4 form reflect how you will file your tax return at the end of the financial year. If you select a single filing status on your W-4, that does not mean that you can do the same on your tax return if it is incorrect.
In fact, it would be most beneficial for you to file as married filing jointly with your spouse come tax time. When it comes to your W-4, you should select married (most definitely). If you claim one allowance, you will see more take-home pay throughout the year and will most likely receive a refund since you will be claiming a dependent as well.
I’m currently claiming two allowances because I forgot to change it to one, two years ago. Two years ago I had two jobs and that’s why I claimed two but now I’m only working one. If I change my allowances to one, will I see a difference?
Hi Sara,
You will see a bit more take home pay throughout the year by claiming one allowance instead of two.