Filling out a W-4 is less mind-boggling than you think.
One of the first things you have to do when you get a new job is filling out a Form W-4 [Employee’s Withholding Allowance Certificate]. It is essential to complete a W-4 correctly because it determines how much tax will be withheld from your pay and how large your tax refund will be.
The first half of the form is pretty easy. You just have to fill in your name, address, and marital status.
Then you have to figure out how many allowances to claim. This number will determine the amount of your withholding.
Number of allowances to claim
Generally, the number of allowances you should claim will correspond to the number of personal and dependency exemptions you can claim on your tax return, but this is not always the case. Claiming zero allowances will result in the maximum amount of tax withheld. Every additional allowance you claim on top of that means that a little less tax is withheld.
You’re a Dependent:
If you can be claimed as a dependent on someone else’s tax return (ie: your parent’s, aunt’s, etc.), you should claim zero allowances. When you’re a dependent, the person who claims you get the benefit of your personal exemption and you, yourself, will end up owing slightly more in taxes. Hence, the tax should be withheld at the maximum rate of zero allowances.
You are Single:
As a single taxpayer, your W-4 form is straightforward enough but you do have several options when it comes to claiming allowances.
- If you’re single with one job, the allowances to exemptions ratio don’t exactly hold true. Most single people claim one allowance. However, this is likely to result in a refund. If you prefer the extra money after filing, then claiming one allowance is the choice for you.
- Claiming two allowances would get you closer to your exact tax liability, but may actually result in some tax due. That being said, you would have more take-home pay throughout the year since your employer wouldn’t be withholding as much tax from your paychecks.
Essentially you can choose whether to claim one or two, depending on the rest of your tax situation, but it’s probably safer to claim one.
You are Married:
Have you tied the knot? This can drastically change your tax situation. Don’t worry; it’s typically for the better. Being married opens up a few doors for you when it comes to tax benefits. You can now file a joint tax return. This is the absolute ideal filing status in regards to taking advantage of your benefits as a taxpayer. In most cases, being married also allows you to claim more allowances on your W-4.
- If you are married with no children, you should claim two allowances.
- If you are married with one child*, you should claim three allowances.
- If you are married with two children*, you should claim four allowances.
Other Situations:
Things get a little more complicated if you have multiple jobs, your spouse works, or you intend to itemize your deductions. In these cases you should turn your attention to page two of the W-4:
- Deductions and Adjustments Worksheet: Use this worksheet if you plan to itemize deductions on your tax return or claim adjustments to your income.
- Two-Earners/Multiple Jobs Worksheet: You will be directed to use this worksheet from the Personal Allowances Worksheet, line h. It is only necessary if you are married and earning a combined income of over $20,000 or if you are single with two jobs earning over $50,000.
The IRS also has a withholding calculator on their website that can give you a second opinion on how many allowances to claim.
The last thing you need to do is figure out if you are exempt from withholding. For most, this is not the case. Essentially, you are only exempt from withholding if all of the following is true:
- you aren’t a dependent,
- you had the right to a refund of all income tax withheld last year, and
- you are not required to file a return this year.
If you are exempt, you can write exempt in line seven. You’re done! All you have to do now is sign the form and hand it over to your employer.
Update Your W-4 For A Larger Refund or More in Your Paycheck
Even if you’ve been at your job for a while, it’s a good idea to monitor and, if necessary, update your W-4 every year. This is especially true if there’s been a major event in your life such as a marriage or the birth of a child.
The goal is to get your refund or tax due as close to $0 as possible. Getting a big refund when you file taxes is a great feeling. It can also trigger that your withholding needs to be adjusted. The reality is that you could be enjoying that money throughout the year instead of having it withheld from your paychecks.
Regardless, during tax season you’ll need to report the total earnings and tax withheld on a tax return. Use RapidTax to file your taxes without a hassle and receive the maximum refund possible!
Hi I am having hard time what number should I put down on w-4 form? Since I am currently working full time & my husband works full time as well and We have a child. Much appreciated for your time & hope to hear from u soon.
Hi Nanii
The total number of W-4 allowances claimed between you and your husband should be 3. That means he should claim 1 and you should claim 2 or the opposite.
Hello
I am single and have just 1 job. How many exemptions should i claim on my W4. I had claimed 2 last year based on the below:
A – Enter “1” for yourself if no one else can claim you as a dependent – 1
B – Enter “1” if:
• You are single and have only one job; or – 1
• You are married, have only one job, and your spouse does not work; or …
• Your wages from a second job or your spouse’s wages (or the total of both) are $1,500 or less.
What should i claim on my W4. Should it be 1 or 2 and what exactly is the difference? Thanks in advance!!!
Hi Max,
Basically, the lower number you claim on your W-4, means the higher your chances for a tax refund when filing your taxes, but the more taxes taken out from each paycheck. The reverse is also true, the higher number you claim, means the lower your chances for a refund (and higher chances to have tax due), but less taxes are taken out from your paycheck.
Claiming 2 is fine, if you want to receive a refund when filing your taxes, I would suggest changing it to 1. Once you file your 2013 taxes and see your tax refund or tax due, I would suggest deciding then. If you have tax due, then definitely change it to 1.
Hi good day! Im confused about filing up w4.. im a us citizen, married but my wife and daughter is not here in the us yet.. ive got offered a job, salary will be 65k, what should i put in allowance? Should i put single in status? Since its said that check single if spouse is nonresident…
You will file as single.
istarted to work two months ago and I have notice that on may check federal withholdng its not taking money. I dont know if I filled ot the W-4 wrong or I’m claiming too many people.
Hi there,
If there are not taxes being withheld for federal, you should probably change your W-4. The number you listed is probably too high. If you are just claiming yourself, I would suggest changing your W-4 to 1.
Hello my boyfriend needs to redo his w4 because hes had no federal taxes taken out. Since we arent married on line c of the personal allowences worksheet would he list me as spouse or only as a dependent on line d? We have one child together and I have one child from a prior relationship that he will also claim. As of now his w4 has him claiming 8 allowences. Is this correct or does he need to change it?
Hi Cystal,
Since you aren’t married, he will not list you as a spouse. He can list you as a dependent if you lived with him all year, you make less than $3,900/year, and he provides more than half of your support.
He should not be claiming 8 allowances on his W-4. That is too high. He should claim 3 or 4. If he can list you as a dependent, he should change the W-4 to 4. If not, he should change it to 3. This will impact his taxes filed next year.