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 just recently got married and i have no clue really what all of this means. Should we file jointly or separately? Whats the legal way to do it? I just want to make sure that i fill out my paperwork correctly so that i wont end up in jail or owing money.
Hi Brescha,
It’s up to you and your spouse if you want to file jointly or file separately. If you are married, chances are it will be best for you and your spouse to file jointly. As long as you file your taxes before, you’ll be okay 🙂
My husband and I both started a new job making 31500 annually each for the same company for a combined 63,000. We are strugging with our W4s. Everyone is telling us to do 0 allowances for 2014 and saying we’ll get a huge return.
We have 1 dependent (our 3 year old son) and pay around 6000 a year in child care. We are not sure what we had at our previous employer only that we did not owe but we made 45,000 combined so a lot less.
I do pay student loans each month but not sure what the amount will be for interest. We do file jointly. We rent rather than own a home.
According to the irs calculator if we do more than 1 allowance each we owe but the amount of money taken out with zero allowances is a lot of money each month and we really wouldn’t get a huge return. I’m not so concerned about the amount we’d get back rather than I do not want to owe money.
Hi Kathleen,
You most likely won’t have to pay at the end of the year if you each claim 1 allowance. If you do, it will be a small amount. If you claim more than one, then you are much more likely to definitely have to pay. Claiming one will allow you to have less taxes taken out every pay period (compared to claiming 0), while still being safe come tax season.
I just got marry with one child my wife doesn’t work I have one job, how much would I claim on my W4 form in line #5
Hi Mike,
You can claim three on your W-4 form. You also are free to claim less than three, although in your case, I would claim at least two. The more you claim, the less likely you are to receive a refund when filing your taxes and the less you claim, the more likely you are to receive a refund (and more taxes are taken out each pay period).
We actually have an updated article post about how many to claim if you would like to read further on the subject. Here’s the link; http://www.rapidtax.com/blog/breakdown-w-4-allowances/
I would like to know which should I file tax myself or married joint so i can earn tax refund more money We are married with one child
Hi Kristine,
We actually have an article posting about this exact subject titled “Is There an Advantage to Filing Taxes Jointly” The link is
The article will probably answer most of your questions regarding if should file jointly or not. For most couples, it’s best to file jointly because of the tax breaks. If you are wondering how to fill out your W-4,if you want to receive a refund, I suggest claiming 1.
Best of luck!
I just started a new job but last year I was on unemployment during my pregnancy and worked for a few months but owed the IRS $500.00 and that was the first time. I need help filling out the 2013 W4. I am single with one child, will I get any money back??? Do I mark 1 in box 1 and 2 since I am single with one job and do I mark 1 for having a child…because that is 3.
How can I get money back where I am not paying…please help me…
The lower the number, the less taxes you will pay come tax season (and the more likely you will be to receive a tax refund). If you want to be more confident that you won’t have to pay come tax season, I would suggest claiming 2 (or even 1) on your W-4. It’s important to remember that although you will possibly receive a refund at tax season, the lower the number you claim on your W-4, the more taxes are taken out each pay check (meaning your pay check will be smaller).