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 married with 6 kids. I am the only one employed. Should I be claiming 9 on my w4?
Hi Dan,
I suggest taking a look at the IRS Withholding Calculator in your situation. It only takes a few minutes to complete and will give you the most appropriate amount of allowances to claim according to the answers that you provide.
I have 3 kids and was divorced a couple of years ago and by decree, we split who gets to claim who every other year. For example, for 2013, I claimed 2 kids and she claimed 1. Now for 2014 I will claim 1 and she claims 2. I am now recently married. We both work full time and we get to claim 1 child for 2014. I would rather pay out more and get some back then not pay enough and have to owe. What is your best advise on how many to claim?
Hi Jason,
The more allowances you claim, the more money you will see each paycheck because less is being withheld. However, the more allowances you claim, the lower your refund will be or the higher your chance of owing at the end of the tax year will be. I would suggest claiming the lowest amount of allowances possible in order to lessen your chances of owing money. I suggest taking a look at the IRS Withholding Calculator as a second point of reference. It only takes a few minutes to complete and will give you the most appropriate amount of allowances to claim based on the specific answers your provide.
My wife and I both work and each claim married and 1. We have 1 child as well. What it the best option for us both to claim so that we don’t owe and the end of the year?
Hi Dave,
I suggest using the IRS Withholding Calculator. It will give you the most accurate amount of allowances so that you do not owe or get back too much at the end of the tax year.
Keep in mind that the more allowances you claim, the more money you will see in each paycheck. However the less of a refund you will see at the end of the tax year (also with the chance of owing money).
I am Married and have 1 child. How should I file? What should my husband file? I want more money but also don’t want to owe any money at the end
Hi Whitney,
You should claim three allowances. However, does your husband work also? I would refer to the IRS Withholding Calculator. This is a great tool that will ask you several specific questions that will provide you with the number of allowances to claim that will be most beneficial to your specific situation.
I’m a single college student and I just got a great summer job. My mom files me under her taxes as dependent. This year with this summer job and my part time regular job I should earn around 13,000. How many allowances can I claim? I want to get more money back in my paycheck but I do not know if this will affect my mom’s tax return she will file next year. I know I have to file taxes as well since I exceed the amount that allows exemption from filing.
Hi Matty,
Congratulations on the new job!
If you are single and work more than one job, you can claim one allowance at each job or two allowances at one job and zero at the other.