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!
My daughter is a full time student in college and I claim her as a dependent; however she receives the opportunities to work at some of the athletic events and must complete a W4. Can she claim 0 or does she have claim at least 1?
Thank you.
Hi Sherry,
Although you have explained your daughter’s tax situation a bit above, it will depend on her income whether she will want to claim zero or one allowance. First, determine whether or not she will be required to file a tax return based on her income as a dependent.
According to the IRS, as a dependent, your daughter must file a return if any of the following apply:
1. Her expected unearned income will be more than $1,000.
2. Her expected earned income will be more than $6,200.
3. Her expected gross income will be more than the larger of— $1,000 OR her earned income (up to $5,850) plus $350.
Now that you know if she needs to file or not, follow the instructions below:
1. If she DOES need to file, she should claim ZERO allowances. This will ensure that enough tax is withheld over the year to cover tax owed to the IRS. She will most likely be issued a refund from the IRS.
2. IF she DOES NOT need to file, she should claim ONE allowance. This will ensure that she is not ‘losing’ and of her earned income to taxes being withheld that maybe should not have been.
hello,
I am 22 and single, no dependent and no one will file me as a dependent. I just started my first job this week and starting the 2nd job by beginning of October.
my first job pays $9 and 2nd job pay $13.50. This is my first time working and plan to file my tax next year.
I filled 0 allowance for my first job and I plan to fill 2 allowances on my 2nd job.
I need to get a big check and huge tax refund.
what do you advise?
Hi Breezy,
Congratulations on the new job!
I would advise you to claim one allowance on your higher paying source of income W-4 and zero on your lower paying job W-4. Claiming two allowances may get you more money out of each paycheck but it runs you the risk of owing the IRS come time to file your tax return.
Hi, I am asked to fill out an EMPLOYEE’S WITHHOLDING ALLOWANCE CERTIFICATE form for my new job in the upcoming week. I am 20 years old and my mom claims me as a dependent. There is three parts to the form: Regular Withholding Allowances (A), Estimated Deductions and Tax Withholding (B) and Estimated Tax (C).
(A) Allowance for yourself — enter 1 . . . . . . . . . . . . . . . . . . . . . . . . . (A)
(B) Allowance for your spouse (if not separately claimed by your spouse) — enter 1 . . . . . . . . . . (B)
(C) Allowance for blindness — yourself — enter 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . (C)
(D) Allowance for blindness — your spouse (if not separately claimed by your spouse) — enter 1 . . . . . . (D)
(E) Allowance(s) for dependent(s) — do not include yourself or your spouse . . . . . . . (E)
(F) Total — add lines (A) through (E) above . . . . . . . . . . . . . . . . (F)
Should I claim 1 or 0 on (A)? I am sure I don’t need to put anything from B-E. Should I also leave parts B and C blank?
Much appreciated!
Kevin
Hi Kevin,
Since you are being claimed as a dependent, you can claim zero or one allowance on your W-4 form. Something to keep in mind about the W-4 form is that you are only responsible for completing the bottom half underneath the dotted line and submitting that to your employer. The most important part of the W-4 that they need to refer to is line H and your filing status. This gives them an estimate of how much you are allowing to be withheld to cover taxes to the IRS. You do not need to complete the top portion (the Personal Allowances Worksheet).
Hi this is kind of a lengthy question and i apologize for this. First i am on Disability but do not have tax taken out every month. I got divorced in January of this year (2015). My 14 year old daughter lives me full time in an apartment. I am starting a job next week and am trying to fill out my W-4. Now it gets confusing. Before the divorce we filed jointly and I always owed tax on my Disability that I get. Now last year my daughter lived with my father for a few months and he went and filed and claimed my daughter on his taxes without mine or my ex husbands knowledge. On April 15,2015 we wound up owing $3,000.00 in taxes because of what my father did. I don’t know what to claim at this point for my W-4 as i do not want to owe anymore than i already do. Like I said I will get hit with paying tax on my Disability + still owing on the $3,000.00 ( my ex and are making payments every month) and now working. I should say that I did have a previous job that I worked from January(2015) to June(2015). I was claiming 1 while working there. Any help would be greatly appreciated and Thank You in advanced. Again I apologize for this being so long and confusing
Hi Andrea,
I would advise you to amend your tax return. Based on the situation that you detailed above, you can legally claim your daughter as a dependent while your father cannot. Once you submit your amendment, the IRS will reach out to you since your daughter would show in their records as already being claimed. You will need to provide proof that you can claim her as your dependent. Honestly, this will be a lengthy process but it can be resolved.
Hi,
I am single and I filed as the head of household as my parents live with me and I bear all the expense of the house as my parents don’t work and they don’t get any social security. I have claimed my parents as dependents as I pay for all their expenses including food and rent.No one else can claim me as a dependent and I am single with with only one job. So my total is coming to 5. Is it too high?? Will I owe IRS at tax time??
Thanks
Hi Yaser,
Although you can claim 5 allowances, it may cause you to have a tax bill with the IRS after filing taxes. I advise that you claim three allowances. This allows you to claim head of household and both your parents as dependents. Claiming three will provide you with a good amount of take-home income as well as withholding a decent amount to cover taxes that you are liable for.