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 single, with 1 child, we claim her 50-50 so I get two tax credits and so does he. But Idk what to change my W4 to?? Since this year I had to owe and next year I don’t wanna owe
Hi Noreen,
It is definitely beneficial for you to update your W-4 form every other year in the situation. On the years that you will claim your child as a dependent, I suggest claiming one allowance for you and an additional allowance for your child. On years that you will not claim your child as a dependent, then I suggest claiming just one allowance. If you prefer more of your income to be withheld from your paycheck for taxes, then you may want to claim zero allowances for yourself instead.
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,
The amount of allowances you claim will depend on your filing status as well as if you are claiming dependents on your tax return. The next thing you should determine is if you prefer to pay more throughout the year (with less take-home pay) or if you would like to pay in bulk to the IRS (and receive more take home pay throughout the year). The less allowances you claim, the more tax will be withheld from your paychecks. The more allowances you claim, the less will be withheld from your paychecks. If too little tax is withheld, you will have a tax due amount after filing with the IRS. If too much is withheld, you will be issued a refund after filing with the IRS. A good rule of thumb is to claim one allowance for yourself and an additional allowance for each dependent you plan to claim on your return. Keep in mind that if you follow the Personal Allowances Worksheet, you will calculate the maximum amount of allowances you could claim based on IRS rules. You can ALWAYS claim less than calculated form this form.
When you work multiple jobs, you can either follow along with the second page of the W-4 OR claim the majority/all of your allowances on the higher paying job OR split the allowances equally among the three jobs’ W-4 forms. In your case, since your full-time job earns you the bulk of your income, I suggest claiming all of your allowances at that job with zero allowances at the other two.
I have to pay both state and federal taxes at the end of the year and am completely confused as to why. I answer all the questions properly on W4, but still end up paying. I’m trying to avoid paying for this new year, so should I put 0s on everything. I know it says your not supposed to, but I don’t know what I’m doing wrong in the first place?!? I have 2 kids, so I think I’ve been putting 2 on D but 0 on everything else. The G is very confusing to me – we make less than 100,000, so I put 2=2=4-1=3? Again, I’m guessing this is what I’ve done in the past. To solve the problem, I was thinking of entering all 0s and then entering an additional amount on line 6 to even out what I’ve been paying? However, I don’t want my checks to be hundreds of dollars less than normal. Please help!
Hi Jenneane,
Something to keep in mind is that the more allowances you claim, the less is withheld from your income to cover tax owed. The less allowances you claim, the more is withheld. Claiming zero means the maximum amount will be withheld. Although this will provide you with the highest possible refund, you will have the lowest take-home pay allowable as well. The Personal Allowances Worksheet helps you calculate the maximum amount of allowances you can claim based on IRS standards. However, you can always claim less since following the worksheet does not ensure that you will not owe the IRS OR be issued a refund. Instead, I suggest following this rule of thumb- claim one allowance for yourself and an additional allowance for each dependent you will claim on your tax return. This will allow you to have more take-home pay than you would if you claimed zero allowances but still enough withheld that you shouldn’t owe the IRS an absurd amount after filing.
I am single living on my own. I have two jobs and no children. What would be the best option for me for allowances. I am a banker full-time and a server part-time. This tax stuff always confuses me. Can I file as head of house hold? and how many allowances should I put for both jobs?
Hi Kelsey,
Since you are most likely earning a higher income at your full-time banking position, you may want to claim one allowance on that W-4 form and zero on the part-time one. You can only file as head of household if you meet all of the following requirements:
1. You were not married (you were single, divorced, or legally separated), or were “considered unmarried” on the last day of the tax year.
2. You paid more than half the cost of “keeping up a home” for the year.
3. A “Qualifying Person” lived with you in that home for more than half the year, except for temporary absences (a dependent parent is not required to live with you).
Hi,
My wife & I file jointly. We want the bigger return, so by default we always claim 0 allowances for both. We both make similar salaries, no children. Why are we barely getting a return? (Just a couple of hundred after the mortgage interest on our home is added) I have to literally set aside even more money throughout the year?
Hi Sean,
The first thing you should both do is check your pay-stubs/statements (or speak with your payroll department(s)) to confirm that zero allowances are claimed. You should see this information for both state and federal towards the top of your statements. Assuming this is correct, you may want to look into any credits that you could be claiming but aren’t. While deductions definitely help reduce your taxable income, credits will actually reduce your tax due (or boost your refund) dollar-for-dollar. Feel free to give our support team a call. They’ll be able to suggest a few credits that you could qualify for based on your specific tax situation. Remember that it will ultimately come down to the amount of income you are earning.