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 16, my legal guardian can claim me, I have never worked before. How would i mark my W-4 form?
Hi Alex,
Once you begin your first job, you will need to take a look at your income to see if it is high enough to have to file your own tax return. I would take a look at the IRS Withholding Calculator to determine the best way to file. In most cases, someone in your situation would claim 0 allowances on your W4.
i am single. if i change my allowance from two to one, will i see much difference take home pay?
Hi Teri,
You will see a bit of a difference in each paycheck if you adjust the amount of allowances you claim from two to one. The less allowances you claim, the less you will see in each paycheck since more is being withheld. However if you update your allowances from two to one, you will see a higher refund at the end of the tax year.
I am single and claim two allowances, if I change it to one right now (September) will I see a difference in my tax refund? I worked two jobs before and forgot to change my allowances when I left the other job 2 years ago.
Hi Mary,
If you update your W-4 form now to claim one allowance, you will see a slight difference in the amount you end up owing the IRS (or the amount issued in your refund). Claiming a lower amount of allowances allows your employer to have more withheld from your paychecks throughout the year to cover taxes owed to the IRS. The amount will not be dramatically different but you will notice the difference in future years.
P.S. to my post of a few minutes ago: I was unemployed for a portion of this year and have received $5197.00 in Unemployment benefits to date; $600 in Federal Income tax withheld and $180 State income tax was withheld.
Thank you.
I got divorced in 2013, and my ex-husband has primary residential custody of both our children (they live with me on weekends and vacations.) Neither of us pay any child support to each other.
So I file as single, head of household, but how many allowances should I claim? I used the online IRS Withholding calculator and it recommended I claim 6, but I don’t want to end up paying a lot of taxes at the end of the year! (that happened last year and I had to borrow money to pay.) 🙁
How many allowances should i claim?
Thanks.
Hi Sarah,
Keep in mind that the more allowances you claim, the more you will see in each paycheck. However, with more allowances being claimed comes a smaller refund at the end of the tax year (or a higher chance of owing money). This may be the reason that you owed last year. I would decrease the amount of allowances you are claiming so that you do not owe as much at the end of the year.
Our daughter, age 14, is a full time student in HS and about to begin her first part time job. On the 2014 W-4 worksheet, I know she can’t enter “1” for item A, as we will claim her again as a dependent on our joint 2014 return. Can she claim “1” on question B, since she is single and will only this one part time job? I don’t think she can be exempt as we have a custodial account in her name in which there was unearned income last year (capital gains distribution) in excess of $1,000. Thanks.
Hi Larry,
As a student with no dependents and her parents being able to claim her, I suggest that she claims zero allowances.
Also, take a look at the IRS Withholding Calculator as another reference point. This will only take a few minutes to complete and will give her the most accurate amount of allowances to claim based on her circumstances.