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 living with my fiance & pregnant (due in feb. 2016), as of now I get the most amount of taxes taken out each week, but was possibly looking to change it. How many dependents should I list on my w4 (also considered head of house hold as well)?
Hi Tinamarie,
Congratulations on the new addition!
You can update your W-4 form as you see fit. As of right now based on your tax situation, I would advise you to claim one on your W-4 form. Once your little one has arrived, I suggest updating your W-4 to claim an additional allowance since you will be claiming a dependent on your tax return.
I am newly married this year with one child. My wife and I will be filing joint when tax season comes back around. Both my wife and I work. I was wondering, do both my wife and I claim each other, our selves, and our son on our separate job W-4’s? I’m a bit lost when it comes to such things.
Hi Cadeus,
Congratulations on tying the knot!
When it comes to your W-4 forms, there are a few items that you may want to update. First, both you and your wife will need to update your filing status to ‘married’. It gets a bit more confusing when choosing your allowances. The best rule to follow is to be as honest as possible and have it more or less reflect what you expect to see on your actual tax return come time to file. To put that into perspective, based on the information you have shared above, you and your wife will not both claim an allowance for your son. Generally, couples with a similar tax situation as yours will have the spouse earning the higher income to claim one allowance for them self and an additional allowance for each dependent. Meanwhile, the spouse earning less will claim just one allowance for them self. In your case, one of you will claim one allowance while the other claims two allowances.
Keep in mind that if you feel too little or too much money is being withheld from your paychecks, you can update your W-4 form as you see necessary. The higher the amount of allowances, the less will be withheld (but the smaller your refund) and the lower the amount of allowances, the more will be withheld (and the larger your refund amount will be).
I am head of household, single mom with two kids, I work two jobs 1 full time and 1 part time. I don’t want them to take a lot of tax out my check from my part time job because i want a decent pay and a decent refund at the end of the year, but i don’t want to payback any taxes back. what should i claim
Hi Tina,
I would advise claiming zero allowances at your part-time job while claiming all of your allowances at your full-time job. As a single mom with two dependents (assuming you will be claiming both children on your tax return), I suggest claiming no more than three allowances on your W-4 form. This will allow you to have enough take-home income to cover day to day costs while not having to worry about owing taxes for your part-time position.
I just started a new job and I was thinking about changing my W-4. I was wondering if it is best for me to claim 0 or 1 allowance. I’m a single woman with no children. I would like to get the most money back in my check throughout the year but I was wondering does that mean I will receive a smaller refund?
Hi Cheryl,
Congratulations on the new job!
With a single filing status and one source of income, it is most beneficial for you to claim one allowance. Keep in mind that the higher the amount of allowances you claim, the smaller your refund will be after filing. If you stick with claiming zero allowances, you will have the maximum amount of money withheld throughout the year to cover tax owed to the IRS and will be issued a larger refund after filing.
I currently claim 2 allowances, would it be okay to claim 0 or 1? I only work one job, go to school part time and no one can claim me as a dependent.
I make about 17k annually.
Hi Sara,
With your tax situation explained above, I would suggest that you claim zero or one allowance. This allows for more money to be withheld from your paychecks to cover tax owed to the IRS, possibly resulting in you being issued a refund after filing for the year. Keep in mind that when completing your W-4 form, you are not required to submit the personal allowances worksheet to your employer. They will only be referring to line H.