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, i have a question..I’m single with two jobs.what number should i file for both jobs to receive a bigger tax return?
Hi Brandon,
If you prefer more in your tax refund over your paycheck, you’ll want to claim zero allowances on both W-4s. This allows your employer to withhold the maximum amount from your income to cover taxes owed to the IRS.
Hello,
I am a single mom and I have 1 child. What should I claim on my Federal and State? I only make 35,000 yearly and my son and I each receive $853 /monthly from Social Security because my husband passed away 5 years ago. I was claiming 4 for FED and 4 for State (Maryland). The person I filed my taxes with suggested I do 2 for Federal and 1 for State.
Hello,
My question is I work 3 part time jobs, I have 2 adult children who I no longer support and a husband who will file separately. I will file as head of household. how many should I claim of each w4. The income from all 3 of my part time jobs is only about 20,000
Hi Nancy,
Typically, someone with multiple employers will claim the majority or all of their allowances on the higher paying job’s W-4 form. A good rule of thumb when choosing how many allowances to claim is to claim one allowance for yourself and an additional allowance for each dependent or special circumstance. In your case, I suggest claiming two allowances. Remember that you can always claim less allowances. This allows for more to be withheld from your paychecks to cover your tax liability. Taxpayers will tend to do this if they prefer a refund after filing.
Hi, so I work as a in home care provider for essentially 3 different companies, 2 private and the last one is thru the state. A few years ago when I had 2 job following the guide on I put 2 allowances, and was told I needed to pay a very large sums back. When I started these jobs I was told by a friend to put 0 allowances to prevent that from happening again, but I just did my taxes and STILL owe a huge sum! I’m a single person, no kids or spouses past or present. I’m just trying to get my taxes so they take the correct amount out of my paycheck, so I don’t have to owe or get a refund. Any ideas?
Hi Tim,
I strongly suggest checking in with your payroll department and make sure that have updated your W-4 form to claim zero allowances. You can also look into certain tax credits available to you. Credits directly decrease your tax due, dollar-for-dollar.
Hello Tax Advisor,
I am a single mom, still married but seperated for 2 years now. head of household with 1 minor dependent. My gross income for 2015 was 55k and my current W4 was M-7. I ended owing taxes to IRS. I do not want to be on the same situation next year when I file my 2016 tax, so my question is what status will put on my W4 and how many exemptions so I can get refund by tax season and at the same time not get too much deductions from my paycheck? Head of household with 1 or 2 exemptions or Single 1 or 2? Thanks so much for your help!
Hi Marie,
Since you want to be as honest as possible on your tax return, the first thing to do is figure out which filing status you are eligible to claim. I suggest taking a look at the IRS tool to help you figure if you should be claiming head of household, single or even married (since you mentioned that you still are legally). You can find this tool HERE. If you want to owe less after filing your return for the year, then I suggest claiming the least amount of allowances on your W-4 Form as you see fit. The more allowances you claim, the less is withheld from your paychecks over the course of the year which can typically result in owing more come tax time.