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 just started a new job three weeks ago and I will claim myself as single with one dependent (my daughter ) my question is do I have to claim the child tax credit? This is putting me at 4 if I choose it and I received my first pay checking from training last week and they did not take federal taxes out
Hi Miranda,
Congratulations on the new job! When completing your W-4, you can always choose less than you would if you followed the instructions listed on the Personal Allowances Worksheet. This is actually one document that the IRS gives you a bit of leeway on. Since they will eventually receive the money you owe them for tax, you get to choose how it is disbursed to them; gradually over the year via your paycheck withholding OR after filing when you receive your tax bill to pay back to them. In your situation, claiming less than 4 allowances is a good idea, just to make sure that taxes are being withheld from your paychecks. You can still claim the Child Tax Credit when you file your tax return (as long as you meet the IRS requirements to do so).
I was wondering if you knew why I got my w2 and my federal tax withheld was blank??? When I filled out my w4 that I remember I put 2 cuz I’m single with a child. So am I not gonna get anything???
Hi Kelli,
Don’t worry too much about owing the IRS yet. To get an approximate amount of how much you will owe or be refunded, you can plug enter your information on our tax calculator HERE.
If you see that your W-2 reports no withholding from your income throughout the year, double check that this information is correct by speaking with your employer/payroll department and taking a look at your pay stubs from each pay period. When looking at your pay stubs, you should see a section titled, “Statutory Deductions” with “Federal Income” listed underneath. It would be best to look at your last stub from the year so that you can see the “Year-to-Date” amount. It will be listed as a negative dollar amount if your employer was withholding federal taxes. If you really didn’t have any withholding for the year, be sure to claim any credits that you qualify in order to decrease your tax bill for the year. You’ll want to adjust your W-4 for this year to claim less allowances. Also, keep an eye on your paystubs to make absolute sure that your employer has updated your information.
I claim head of household and my two kids as dependents. When I follow the instructions on the W4 I end up with 8, but that means NO tax will be withheld and I do not want that. What is a safe # for me to claim with my kids as dependents/head of household?
Hi Michelle,
Following the Personal Allowances Worksheet will help you to calculate the maximum amount of allowances you can claim in accordance with the IRS standards. However, this amount tends to be high and result in a tax bill in some cases. A more beneficial rule of thumb to follow is to claim an allowance for yourself, an additional allowance for each dependent and one for the head of household filing status. Based on the information you provided, claiming 4 allowances would be the more realistic situation for you.
Hello,
I work and so does my wife. We have 1 child. I make more then she does. I was going to claim 3 on my W4 and she was going to claim 0 will that work? We also have read whoever makes highest should claim everyone and the lower person should claim 0 MARRIED BUT WITHHOLD AT HIGHER SINGLE RATE, ZERO ALLOWANCES. What do you suggest?
We would like to break even and not have to pay in at tax time. We would end up paying, break even or even get a refund?
Thanks,
Brad
Hi Brad,
You have a bit of leeway when it comes to completing the W-4 form. It is more based on your preference rather than on the ‘right’ answer. If you use the Personal Allowances Worksheet, then you will calculate the maximum amount of allowances that you can claim on our W-4 form based on IRS regulations. However, it is important to know that you can always claim less allowances if you prefer for more to be withheld from your paychecks to go toward your tax liability.
That being said, if both you and your spouse are earning about the same amount of income, then you and your spouse could split the amount of allowances equally. If one spouse earns a higher income, the higher earner may choose to claim the majority or all of the allowances on their W-4 while the other spouse claims zero or the remainder. You mentioned that you fall under the latter category of earner more than your spouse. I suggest claiming an allowance for yourself and an additional allowance for your dependent child with your spouse claiming zero allowances. With that said, keep in mind that you can update your W-4 form as you see necessary throughout the year.
hi,
i am working full time with $17000+ annual income and a part time job with $2000+ and another $4000+ seasonal job. what do i claim on each w4?
Thank you!
Hi Roselyn,
Although you’ve provided your income, the amount of allowances you claim will also depend on your filing status and any dependents you plan on claiming. Based on the information stated above, I will try to help as much as possible. The first thing to keep in mind is that the more allowances you claim, the less will be withheld from your paychecks to cover taxes (and more tax due after filing). The less allowances you claim, the more will be withheld from your paychecks to cover taxes owed (and less tax due after filing). I suggest claiming zero allowances on your W-4 forms for your part time and seasonal jobs and most/all of your allowances (if any based on the other factors of your tax situation) on your full time job W-4.
im filing single and no dependent.. so claim 0 in all of my 3 jobs?