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
My wife and I both work. Last year I filed for 2 exemptions on my w4 and she filed for 1 and we have to pay this year instead of getting a refund. What are the exemptions we should each file for on our w4 so we will have more taken out each check and not have to pay next year. Thanks for your help.
Hi DJ,
As a general rule of thumb for completing the W-4 form, most people will claim one allowance for themselves and an additional allowance for each dependent they plan to claim on their tax return (or special circumstance). In your case, you mentioned no dependents so I would advise you each claim one allowance. If you still feel this is too little being withheld, then one of you can claim zero. This allows for the maximum amount to be withheld for taxes.
Hello,
I am married and have 2 kids. I’m living with my husband. My son is 21 and living with us but he has a part time job and filed a tax return for himself. I paid for his food and every thing. So we are 4 and how many allowances should i claim in my W4?
thank you so much
Melika
Hi Melika,
The first step is deciding if you will file a joint tax return or not. If so, then you’ll want to split the allowances between both W-4s. Typically, the spouse with a higher income will claim the majority/all of the allowances. A good rule of thumb is to claim an allowance for yourself and an additional allowance for each dependent you will claim on your tax return. Now, you mentioned that your son filed a tax return for himself but that you will claim him as well. Only one personal exemption per person can be claimed so double check with him if he claimed his or not (it’s possible that he didn’t). Otherwise, your return will be rejected and you will need to amend your return.
Hi,
I have a question. My husband and I both have jobs and we have 1 son, what number should we claim. He makes more than I do.
Hi Brittany,
Typically, when filing jointly, spouses will either split the amount of allowances claimed on the W-4s OR the spouse earning the higher income will claim the majority. The latter is done if there is a fairly large difference in incomes. When calculating the amount of allowances to claim in the first place, you can either follow the personal allowances worksheet or claim one allowance for yourself and an additional one for each dependent you’ll claim on your tax return. Something to keep in mind if you’re using the personal allowances worksheet is that this will calculate the maximum amount of allowances you can claim based on IRS standards. This could cause you to end up with a tax bill since less will be withheld from your paychecks throughout the year.
Hello i have a question when doing w4 forms my husband claimed 2 been my son and me i claimed 0 but when doing taxes we want to do them separate and i am claiming my son on my taxes will it effect my husband when he does his taxes since he put 2 on w4 form.
Hi Michelle,
Your tax return should ideally reflect how your completed your W-4 form for the year. With a situation like this, your husband’s tax due/refund amount will be effected since he had two allowances claimed on his W-4 form but will only be filing his return with a personal exemption for himself. An option that may make sense for you both (depending on your tax situation) would be to file a joint federal tax return but file separate state tax returns. Although you didn’t explain your specific situation above, it is important to know that filing a joint tax return is most beneficial for the majority of situations.
When filling out my W4 four years ago, I mistakenly entered “2” for number of exemptions. So for the past couple of years I haven’t received a refund and had to pay a marginal amount of taxes. I am trying to figure out if refilling those years will result in a refund or if it would be a waste of time. I apologize in advance if there is an obvious answer to my question, but the sheer mention of TAXES makes me anxious and I lose all comprehension skills. 🙁
Hi Jules,
No worries! Taxes can be intimidating and confusing.
Unfortunately, once you complete your W-4 form, it will affect your income until you update it. There is no way to update your W-4 and have it reflect on past earned income. Therefore, you would have no reason to amend those tax returns and refile them if that is the sole reason you would be doing it. It will not affect your tax due amount.