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!
Hello Tax Advisor,
What is the correct amount of dependents a married couple(filing jointly), no kids, and both working should put on their W2 each?
We have always done our taxes with both claiming 1 on each w2 and we haven’t been told differently until this years when we did our taxes, saying our total dependents should both be 0. I wasn’t sure that was completely true.
Hi,
I’m 19 and I have a part time job. My parents don’t claim me as a dependent anymore and I only have one job. However, I still live with them. So on my W4 how many allowance should I have? I’m very confused because people tell me many different answers.
Hi Jackie,
Filling out a W-4 can be confusing. I would suggest claiming 0 or 1. If you claim 0, you will have more taxes taken out each pay period but when filing your taxes, you will receive a larger tax refund. IF you claim 1, you will have less taxes taken out each pay period, but will receive a a smaller refund when filing your taxes (or no refund at all).
Best of luck!
Hello I am recently single, own a new house(2nd year living here), and have one child. I am about to start a new job. Is claiming 3 the correct number on the w4? I am planning on on filing as head of household next year as well, does this sound ok? Will i possibly get a return at the end of the year?
Hi Chuck,
You can claim 3 if you are filing as head of household and probably still get a refund. If you claim 2, you will get a larger tax refund when filing your taxes, but more tax will be withheld from your paychecks.
Also, you can claim head of household if you meet the following requirements;
• You are unmarried or considered unmarried on the last day of the year and file a separate tax return.
• A spouse did not live in the home during the last 6 months of the year.
• You paid more than half the cost of keeping up a home for the year.
• The child or dependent lived with you
Hi im single I have to kids I started to work on November 2013 on my w-4i put 1 but I gave birth to my second child on dec 21 2013 can I claim my taxes for 2013 and can I claim my two children even if my youngest was barely born and can I.can I put myself as head of household im the only one who is working bringing money to children. Also this my first time ever trying to do my tax so im not sure what to or have with me when I go do my taxes. thank you I hope to have an answer from you tax advisor
Hi Clara,
Regarding your questions. Your child was born in 2013, therefore you can claim both of your children for 2013 taxes. From what you have said, it sounds like you qualify to claim head of household. The requirements to claim head of household are as follows;
•You are unmarried or considered unmarried on the last day of the year and file a separate tax return.
•A spouse did not live in the home during the last 6 months of the year.
•You paid more than half the cost of keeping up a home for the year.
•The child or dependent lived with you
If you are unsure on how to file your taxes, no problem at all. That’s why we are here. To get started, simply go to our Create an Account page, and create an account. You can get started filling in your information immediately. It’s very straightforward and designed to be easy for those filing their taxes for the firs time. When you are filling in your information, if you have any questions at all, feel free to reach out to us via phone (e-mail or live chat). Our tax experts are standing by to help you.
Hope that helps! 🙂
This is so confusing, I am 58 work part time make $15,000 and put all zeros on my w-4 form, BUT my disabled 46 year brother lives with me,gives me $200 a month,and I claim him when filing my taxes I also file as head of household,so should I leave it at zero I want the max taken out each paycheck as I receive a nice refund in March, Please let me know if I am doing this correctlyThank-You!!.
Hi Sharon,
Sounds like you know what you are doing. If you want the maximum taken out in order to receive a large refund, I suggest leaving your W-4 at zero. Considering you claim your brother and head of household, you can change it to one or two. However, if you do change it to one or two your refund will not be as large.