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 there!
I loved your article and all the information, thank you so much for this! I have a question…
So, I live at home with my mom and she gets Social Security so I claim her on my taxes because I support her throughout the year–most of her expenses.
On my W4, I’ve claimed 2; one for me, one for my mom–but I feel like I still get a lot taken out of my check for taxes.
I don’t really care about getting a refund during Spring time, I’d just want more money in my paycheck–would it be OK if I claimed 3 on my W4? I also qualify for Head of Household.
Does the IRS get the W4? Meaning, if I claim “3” on my W4, when it’s filing time and I only have one dependent to list (my mom), can I get in trouble? Or do I just end up paying what I owe and move on?
Hi Jon,
I’m glad that you enjoyed the article! I hope that it helped you understand your W-4 a bit more.
Since the more allowances you claim on your W-4, the less tax will be withheld, you should increase the amount of allowances you are claiming. Even increasing your allowances to three will allow you to see a bit more in your paychecks.
When it comes to your W-4, the IRS gives you the leeway to choose how you would like to pay your taxes (within reason, of course). In other words, you can increase or decrease your allowances as you see necessary throughout the year, without penalty. Whether you pay your taxes throughout the year via paycheck withholding or pay more after filing your tax return, it is the same amount of money.
Hello,
I am living with my mother and boyfriend, we have one child together, how do i fill out my W4? Do i put 1 or 0?
Hi Coeima,
Although you mentioned who you are living with, you did not mention who you are able to claim on your tax return as a dependent. A good rule of thumb to follow is claim one allowance for yourself and an additional allowance for each dependent you plan to claim on your tax return. For example, if you plan to claim your child on your tax return and no one else, then claim two allowances on your W-4 (one for yourself and one for your child). Keep in mind that you can update your W-4 form at any point throughout the year as you see fit (for example, if you get married and decide to file a joint tax return, then you may want to adjust your allowances).
I am single, work one job, no kids… I claimed a 2.. am I going to get anything back at all?! Or am I going to owe?! I get so confused when I do my taxes
Hi Cassie,
Don’t worry. Taxes can get confusing. In order to see if you will owe the IRS or be issued a refund, you can use our free tax calculator tool HERE. You won’t need too much information to use this.
I have a question about whether or not I need to change my W4 and what I claim. I am active duty military and claim 0 on that W4 but I also work out in town at a local hospital and claimed 0 on that W4 also. Should I change what I am claiming on one of my W4s? I owe this money this year and that is the only thing I can think of that is making me owe.
Hi Melissa,
Claiming zero allowances will allow for the maximum amount of allowances to be withheld from your paychecks to cover taxes owed. If you prefer to have less tax due after filing, then continue to claim zero allowances. Claiming any higher will only decrease the amount being withheld for taxes.
I am a single, with one dependent. I claim head of household but normally claim zero on my w4. I spend 6400 on child care a year but I struggle month to month even with a pretty decent income.
Hi Torey,
Since you are claiming zero allowances on your W-4, the maximum amount is being withheld from your paychecks to cover taxes you are liable for. This most likely results in a refund issued to you after filing your taxes for the year. I suggest increasing the amount of allowances you are claiming to reflect your tax situation. A good rule of thumb to follow is claim one allowance for yourself and an additional allowance for each dependent you claim for the year. This will give you more take-home pay each pay period with slightly less of a refund from the IRS.
Also take a look at the child and dependent care credit and the child tax credit which you may qualify for. These will lower your tax amount due to the IRS dollar for dollar. You can also contact our tax team and they will help you to determine if you qualify.