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!
Hi, I live in Alabama. I am 61 and file single (divorced), no dependents. I currently work full-time and my W-4 is set at federal (single with 1 allowance) and state (single with zero allowance). When I turn 62 in January of 2016 I plan to start receiving money monthly from my Florida pension plan and I plan to continue working my current job in Alabama. (At this point in time I do not know when I will actually retire from working.) The pension money I receive will be put into my existing Roth IRA account. With my current job and my current witholding amounts I always receive a refund at income tax time from both federal and state. My question is – taking into account the addition of the Florida pension monies how should I set my pension’s W-4 — at single with 1 allowance or single with zero allowance? Thank you.
Hi Janet,
I would advise that you have your pension W-4 form reflect your current working W-4 form. Since income received from pension is generally less than income from current employment, claiming zero allowances will have a substantial amount of that income withheld for taxes. Take a more in-depth look at pension withholding guidelines here. I have read over this information on the IRS website and think that you will benefit from reading it.
Hi, I’m a dependent with my mom and and 3 other siblings . i am currently single and am a college student with 2 part time jobs. how many allowances should i claim?
Hi Karen,
If you are required to file a tax return based on your income amount, I would advise that you claim zero allowances on your W-4. This will ensure that enough is withheld to cover taxes owed to the IRS. Be sure to report that you are being claimed as a dependent by someone else when you do file your tax return for the year. Only one personal exemption can be claimed per person. If you and your mother both file and claim your personal exemption, then one of the returns will be rejected by the IRS.
I’m married but my spouse is currently not in the US. Should I claim allowances as 1 or 2?
Hi Chan,
Is your spouse a citizen of the U.S.? Keep in mind that it is best to have your W-4 form reflect what you will be claiming on your tax return as best you can. If your spouse does not meet the requirements to be a qualifying dependent then you should claim one allowance. If your spouse is a U.S. citizen and will be living in the U.S. at some point throughout the year for a sufficient amount of time, then you will be able to claim two.
I am a Missouri resident and my last day of employment was November 2. I will receive a severance on November 30. With that being my sole source of income, I would like to receive as much of that money as I can. I am the only person in my household. Again, since that will be my only source of income at the moment, can I change my total number of exemptions to five without receiving any penalties from the IRS?
Thank you.
Hi Bridget,
The IRS cannot penalize you for how you complete your W-4 form. In fact, when it comes to taxes, your W-4 form is one of the few ways you are given a bit of leeway. Ideally, it should reflect your tax return. However, if you would like to have less taxes withheld from your paycheck, then claim a higher number of allowances. If you would like to have more taxes withheld, then claim less allowances (zero allows for the maximum to be withheld). The only negative result could be that you owe the IRS a tax due after filing your tax return due to not enough taxes being withheld throughout the year.
Thank you!
Hello
I am single and just had a child in Aug. We stay with my boyfriend and I just started a new job in a state that has state taxes. My boyfriend will not be claiming our child but I want to know if I should claim 0 1 or 2 allowances on my W4
Thank you
Hi Denise,
I would advise that you claim one allowance for yourself and an additional allowance for your child seeing as you will be claiming him/her as a dependent on your tax return. That will be a total of 2 allowances. Claiming more may result in owing the IRS after filing for the year. If your tax situation changes, be sure to update your W-4 as soon as possible to reflect that.