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 head of house hold not married spouse has part time job and have 3 children i currently claim 4 is it okay to claim 5 or 6? Im not concerned with a big tax refund im more interested in a fatter check but also with out having to pay the irs at the end of the year. My yearly income is between 25,000 – 45,000
Hi Robert,
Based on the W-4 form’s Personal Allowance Worksheet, you can claim 5-6 allowances. You can also take a look at it since I do not have all information about your specific tax situation. Keep in mind that this worksheet assists you in calculating the maximum allowances you can claim. It does not give you the amount of allowances to claim in order to receive a refund come tax time. Claiming a high amount of allowances will always allow you to have a bigger paycheck but it will also increase your tax due to the IRS after filing.
Hello,
I am married and my little sister lives with us. She is 22 but started a new job this September. We’ve pretty much supported her since she graduated in May. What number should I put for allowances on my W-4 allowances for exemptions? Also, we’re filing jointly. Thanks in advance.
Hi Judy,
In order to be eligible to claim a relative as your dependent, you must meet ALL of the following requirements:
1. The relative cannot be considered a Qualifying Child: The individual cannot be your Qualifying Child and cannot be someone else’s Qualifying Child.
2. The relative must either have lived with you for the entire year as a member of the household (a person who is not actually related to you may meet the requirements in this way), or be related to you in one of the following ways: your child, stepchild, grandchild or other descendant of one of your children (or stepchildren or foster children), son-in-law, daughter-in-law, brother, sister, half brother, half sister, stepbrother, stepsister, brother-in-law, sister-in-law, parent, stepfather, stepmother, father-in-law, mother-in-law, grandparent, and, if related by blood, aunt, uncle, niece, or nephew. Remember that a child whom you legally adopted is always considered to be your child.
3. The relative must have made less than $3,950 in gross income during the year.
4. You must have provided more than half of the relative’s total support during the year.
When it comes to completing your W-4, you and your spouse should each claim one allowance for yourselves and you should claim an additional allowance for your siste IF she qualifies as your dependent for tax purposes.
I am a working husband with two kids, my wife and I both file jointly and I was wondering how many dependents I should claim on my w4? I currently claim 0 and my wife claims 2. I just started a new job and noticed how much money I have taken out in taxes. I get paid $807.69 a week and had $170 of taxes taken out, help please, lol.
Hi Chris,
Congratulations on the new job!
A basic rule to follow when completing your tax return is for you and your spouse to each claim one allowance for yourselves. The spouse earning the higher income should claim an additional allowance for each dependent that will be claimed on the joint tax return come time to file. The reason that you are having a large amount withheld from your paychecks now is because you are claiming zero allowances. This means that you’re allowing your employer to withhold the maximum amount of taxes. While this will likely result in a nice refund from the IRS, it doesn’t provide you with too much cushion throughout the year. By claiming a higher amount of allowances, you are able to bring home more from your paychecks because less is being withheld.
I’m single, no dependents. I have one full-time job, one 1099 independent contractor job, and am in the process of enrollment for a W2 job. How many allowances (if any) should I mention when filling the enrollment docs for this new W2 employer?
Hi Dave,
Congratulations on the new position!
When completing your W-4, it will be most beneficial for you to claim one allowance for yourself. If you would like to have more withheld to ensure you do not owe come tax time (for that particular source of income), then claim zero. This will likely result in a refund issued to you from the IRS (which can assist in covering the tax owed for your 1099 income).
Hi,
I am worried about owing a lot of tax. I filled out the calculator and the recommendation was to claim 6 allowances. I thought this was contrary to my research saying that the higher the number the less tax taken out, and the lower the number the more tax taken out. So I assumed I should claim 0 allowance to have the max. However the calculator said 6. Which is correct?
Thank you!
Hi Evet,
One think to note about the Withholding Calculator is that it is providing you with the maximum amount of allowances that you can claim on your W-4 based on the questions you answer about your tax situation. Since the W-4 form gives you the lee-way to adjust how much is withheld throughout the year, a basic rule to follow is claim one allowance for yourself and an additional allowance for each dependent you will claim come time to file your tax return.