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 have a question i have a child and i have a job and im single how many allowances do i put down?
Hi Angelica,
Since each tax situation is unique, I will give you a basic rule of thumb that you can follow when completing your W-4 form. Most commonly, someone will claim one allowance for themselves and an additional allowance for each dependent that they plan on claiming on their tax return. This would be 2 allowances in your case. You also mentioned that you are single with one child. I suggest checking to see if you meet the requirements to file as Head of Household. If so, you may want to claim an additional allowance on your W-4. Keep in mind that you can update your W-4 form as you feel it is necessary. It will go into effect immediately in your place of employment.
Hello
My husband employer asked him to complete a new W-4 and I added the allowance for him and me for spouse. Since I have not worked in 3 years I added 1 on line B since he only has 1 job and I am not working and with no dependents it added to 3 at the end. My husband employer asked him to redo another W-4 stating he cannot claim me as a dependent. I didn’t think I was doing that so I don’t know if I am not reading the form right. Can I still add the allowance since I haven’t worked in years?
Hi Mari,
I see where both you and your husband’s employer are coming from. When it comes to the W-4 form, your husband can follow the personal allowances worksheet as he sees fit and claim the amount of allowances he would prefer (within reason). In fact, if you take another look at the W-4, he is ONLY required to provide his employer with the portion of the form below the dotted line. The top half is for your own records. Your husband’s employer should not necessarily be telling him that he needs to ‘fix’ his W-4 form.
What your husband’s employer was trying to communicate is that, although you do not work, your husband cannot claim you as his dependent. If his employer was just suggesting to lower the amount of allowances he claims, then that is a different story. You’ll want to bear in mind that the more allowances you claim on your W-4, the less of your income is withheld for taxes. The less allowances you claim, the more is withheld. A tax refund is issued if too much is withheld while a tax due is billed if too little is withheld.
I am single with one child and my boyfriend lives with me who is a full time student. How many allowances can I claim for federal tax? Thank you Jenene
Hi Jenene,
If you plan to claim your boyfriend as a relative dependent on your tax return, just be sure that he meets all qualifications set forth by the IRS. If so, then I suggest claiming one allowance for yourself and one allowance for each dependent you will claim on your tax return.
I am retired military and my wife is not employed. When we were both working we claimed MARRIED 00. Now that my retirement income is all we have should we claim MARRIED 01 or MARRIED 02 and still not have to pay at tax time?
Hi Terry,
I suggest claiming one allowance instead of zero so that you will have less taxes withheld and more income throughout the year. This will decrease your refund amount but you will have more cushion throughout the year with one income source.
Hi,
I am legally single and I currently work two jobs. I just submitted my taxes for 2015. I ended up owing a small amount. Find for this year because it was so small.
but to not get in that situation again, can you re-explain what withholding numbers I should claim at each job?
Thanks
Hi Mimi,
If you are currently in the same job situation, then you may want to claim zero allowances at both jobs. This will allow for the maximum amount to be withheld from your paychecks to cover tax you are liable for. Even if an excess is withheld, you will receive the difference as a refund after filing your taxes for the year.