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 will be starting my second job in march, Iam single and no one can claim me as a dependent. My first job is also part-time . Should I enter 1 or 0 in w-4 form .????
Hi Sara,
The W-4 form can be completed based more on your preference for how you would like to pay taxes for the year. The IRS gives you a decent amount of leeway when it comes to completing this form since whichever way you pay, it will be the same amount of tax. The more allowances you claim on your W-4, the less will be withheld from your paychecks for taxes. However, you may have too little withheld which would result in owing the IRS after filing for the year. The less allowances you claim on your W-4, the more will be withheld from your paychecks for taxes. If too much is withheld, then the IRS will issue you a refund for the excess paid.
With all of that being said, claiming zero allowances will allow your employer to withhold the maximum amount of income allowed for taxes. Claiming zero in a situation similar to yours typically results in a refund being issued. If you claim one allowance, you will have less withheld from your paychecks throughout the year. This could still result in a refund. It will just be smaller.
Can my spouse and I both claim 0 on our taxes?
Hi Jenn,
Did you mean to ask if you and your spouse can both claim zero allowances on your W-4 forms? If so, then yes you can. This is not uncommon since it will typically result in a refund being issued to you by the IRS. Claiming zero allowances allows your employer(s) to withhold the maximum amount of income from your paychecks to cover taxes owed to the IRS and state.
Hello,
I just started working in January 2016. I’m a single mother with 2 children. I was wondering how many allowances should I claim on my W-4 form?
Hi Cherice,
A good rule of thumb to follow is to claim one allowance for yourself and an additional allowance for each dependent you will claim on your tax return. You may also want to claim a 4th allowance for your head of household status. Remember that you can always adjust your W-4 form as you see necessary throughout the year.
Hello Tax Advisor,
I am a single mom who will essentially be switching jobs without a work stoppage. I need to fill out a new W4. I have an income around $30k and I let my ex claim our child this year. I owed taxes this year and want to make sure i complete the form correctly this time around. I will get married this year. My fiance and I plan to file Married Jointly next year. We will file with owning a home and a combined income of around $125k. What number should i claim on line 5 of the W4 to ensure we receive a good return in 2017 for 2016 tax yr?
Hi Nat,
Congratulations on tying the knot this year! It is a smart decision to consider your taxes with such a big life change. I suggest that you fill out your W-4 form according to what your tax situation will be on December 31st of that year. In your case, based on what you have shared above, you can choose the married filing status. You will then want to speak with your fiance about how many combined allowances you plan to claim. Typically, when filing a joint return, the spouse earning the higher income will claim the majority or all of the allowances. However, you can choose to split them evenly as well. A good rule of thumb is to claim one allowance each for yourselves and an additional allowance for each dependent you will claim on your tax return. Keep in mind that the more allowances you claim, the less will be withheld from your paychecks to cover your tax liability (and vice versa). If you would prefer to have more of a refund after filing (and more withheld throughout the year), you’ll want to claim less allowances.
Hi there,
I am divorced, but have a fiancé who has 2 kids. My fiancé wants me to claim for the 2 kids because I have been supporting them. That would be myself and the 2 kids only. I have a job. What should I do not to owe taxes, get a little taken out of my pay check, and still get tax refund.
Any advice is appreciate!
Thanks
Hi Mohamed,
In some cases, a stepparent can claim a child as a qualifying dependent. There are 4 tests set forth by the IRS that must be met to claim a child. If all tests are met, then you may be able to claim the child as a dependent. These are as follows:
1. relationship test: the taxpayer’s child or stepchild (whether by blood or adoption), foster child, sibling or step-sibling, or a descendant of one of these
2. residence test: the child has the same principal residence as the taxpayer for more than half the tax year
3. age test: the child must be under the age of 19 at the end of the tax year, or under the age of 24 if a full-time student for at least five months of the year, or be permanently and totally disabled at any time during the year
4. support test: the taxpayer provided more than one-half of the child’s support for the year