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!
Hello I’m single with 1 child. I claim head of household and 1 dependent on my W4s. I was wondering if I was going to get anything back on my refund or do i need to switch it to claiming 3. And what is the difference between claiming 3 or 2?
Hi Onya,
When it comes to allowances being claimed on your W-4 form, the more you claim, the less tax is withheld from your paychecks. The less allowances that you claim, the more is withheld from your paychecks. A refund from the IRS is issued when too much is withheld from your paychecks over the year to cover taxes. If you prefer to see more take-home pay throughout the year, you should claim more allowances. With this option, just keep in mind that if enough is not withheld from your paychecks, you may have an amount due to the IRS after filing. If you prefer a larger refund (or less tax due after filing your tax return) and less take-home pay throughout the year, then claim less allowances on your W-4 form.
Also keep in mind that since you are filing as head of household and claiming a dependent, you will be eligible for even more tax benefits, essentially decreasing your tax amount due to the IRS.
Hello I urgently need your help. I am new to this website and hoping you can help me understand things better. I am a single mom with 2 dependents ( my daughter and my mother who lives with me unemployed). The whole of 2015 I had 2 allowances on my paycheck but now my employer asked me to verify the number of allowances I am claiming so they could make my W 2 for tax returns. If I change my allownces now (december 16th ) from 2 to 4 allowances, would that cause me to get less tax refund for the whole of 2015? Should I wait till January 2016 to change my allowances to 4 so my W 2 for 2015 is made with 2 allowances allowing me to get more tax refund? to head of household so then less tax is witheld from my paycheck ?
Please help! Thank you so much for your guidance
Hi Fatima,
The amount of allowances that you entered on your W-4 form when you began your employment has already affected your tax amount withheld throughout the year and the income you took home in your paychecks. I’m not sure why your employer is asking you for the amount of allowances you are claiming when they have this information on file. This information can be found on your W-4 form and also your pay period statements/stubs that you receive with each paycheck. You cannot alter the amount to be placed on your W-2. The W-2 is simply a reflecting of your W-4 and the income you earned for the year. I suggest speaking with your payroll department to see if they can clear this up with you. They may simply be asking you to verify your allowance amount for security reasons but other than that, it seems a bit odd if they don’t know the amount on your W-4 form.
hi I am single and im currently working and I file my daughter as a dependent on my taxes, how many allowances do I have to claim
Hi April,
Since your best bet is to have your W-4 reflect what you plan to report on your tax return, I would advise that you claim one allowance for yourself and an additional allowance for each dependent that you will claim (in your case, that would be one). I also suggest that you check into whether or not you can file with a head of household status. If you do, claim one more allowance and be sure to report that on your tax return. Based on what you mentioned above, you may be able to. To do so, you need to have met ALL of the following requirements:
1. you were unmarried as of December 31st of the tax year
2. You paid more than half the cost to run your home for that year (rent, mortgage, utilities, etc)
3. You supported a qualifying dependent
I came to the US on June 10th 2015 hence making me an NRA. I will start a part time job on Dec 15th,2015. My husband works and we have no children. What should my W-4 look like? What is my filing status? Thanks.
Hi Rashmi,
As a non-resident alien, there are specific rules when it comes to completing your W-4 form with an employer. As stated by the IRS, you must follow the following guidelines:
1. Check only “Single” marital status on line 3 (regardless of actual marital status).
2. Claim only one withholding allowance on line 5, unless you are a resident of Canada, Mexico, South Korea, a U.S. national, or a student or business apprentice from India.
3. Do not claim “Exempt” withholding status on line 7.
4. Write “Nonresident Alien” or “NRA” above the dotted line on line 6 of Form W-4.
To answer your other question, your filing status will be ‘single’ regardless of the fact that you are married.
I am head of household with no dependents. Should I file one or should I file 2.
Hi Tyrone,
I strongly advise you to confirm that you will be eligible to claim the head of household filing status on your tax return for the year. Based on what you have stated above, you are not supporting any eligible dependents. If this is true, you will not be able to file as Head of Household.
To answer your initial question, as head of household, you would claim two allowances. If you are not using the head of household status, you should claim one allowance.