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 A SINGLE YOUNG LADY(23 YRS OLD), NO KIDS, LIVING ON MY OWN (PAY ALL MY BILLS MYSELF). I GET SO CONFUSED WHEN IT COME TO THE W-4. HOW MANY EXEMPTIONS SHOULD I BE CLAIMING?
IS IT BETTER I ENTER I ON THE LINE THAT SAYS “Enter “1” for yourself if no one else can claim you as a dependent” OR NOT?
Hi Again Kim,
The general rule is that the more allowances you claim, the less withholding you’ll have taken out of your paycheck each pay period. By following the instructions on the Personal Allowances Worksheet of your W-4 Form, you will calculate the maximum amount that you should claim (Keep in mind that this worksheet will not be given to your employer or the IRS). However, you can always claim less than that to ensure that enough will be withheld from each paycheck. If you claim zero, you’ll have the maximum amount withheld. If you claim a larger amount, you’ll have less withheld. The absolute ideal scenario is to have your tax liability or refund, at the end of the year, be as close to zero as possible.
Hi Kim,
I suggest claiming one on your W-4 form as single with one source of income and no dependents.
Hi, I found this site from google search and found it really helpful. I am terrible in this W-4 thing. I am looking for your advice.
I am married, kids (7, 11). My income is around 2.5/yr and my partner’s is around 1.5/yr. I will really appreciate if you can suggest how should we fill our W4s. Currenlty, I am filing as single and they are taking almost 45% of my every paycheck which is crazy.
Thanks in advance.
Hi Gaggy,
I suggest filling out your W-4 as married and claim two or three allowances (since you earn a higher income). I suggest that your partner claim one allowance.
The general rule is that the more allowances you claim, the less withholding you’ll have taken out of your paycheck each pay period. By following the instructions on the Personal Allowances Worksheet of your W-4 Form, you will calculate the maximum amount that you should claim (Keep in mind that this worksheet will not be given to your employer or the IRS). However, you can always claim less than that to ensure that enough will be withheld from each paycheck. If you claim zero, you’ll have the maximum amount withheld. If you claim a larger amount, you’ll have less withheld. The absolute ideal scenario is to have your tax liability or refund, at the end of the year, be as close to zero as possible.
Hello, I am struggling with trying to fill out my W-4. This is the first time since I have filled one out in a few years. I am 21 years old and I live with my boyfriend in our rental town home. We also have a 1 year old son. I just became employed as an Assistant Teacher where I will be paying to bring my son with me to pre-school…..so I am assuming I would qualify for the Child tax credit. The child care expenses that will be taken out of my paycheck will total approximately $7650 for the year. I am very confused on how to fill out my W-4….My boyfriend filled out his W-4 last year and claimed our son as a dependent. So does that mean I cannot claim any dependents on my form? I tried filling out my W-4 and this is what I have so far – Line A=1 (since no one can claim me as a dependent) Line B= 1 (I am single and have only 1 job) Line C= I am confused on this…do I enter 1 or 0? I do not want to have too much tax taken out since I very much depend on my pay checks especially since child care is being deducted. I want to keep as much money in my pocket as I can and I am not concerned about receiving a large tax return…however I dont want to owe anything either. Line D= 1 (for claiming a child as a dependent but I am not sure If i should be putting 0) Line E= 0 (I am not head of household) Line F= 1 (because i have much more than 2000 in child care expenses) Line G= 2 (because my total income will be less than 65000 a year and it says to put 2) Line H= either 5 or 6 depending on what I should fix for the total allowances. Again, I want to pocket the most money that I can and I do not really care about my tax return…but at the same time I do not want to owe. What should I be putting to maximize the amount of money in my pocket? One last thing- Would I be able to write “exempt” on my form? I am not too positive whether to leave that blank or not. Thanks so much for any and all input you may have for me.
Hi Diana,
Do not worry too much about filling out the personal allowances worksheet to a tee as that is more of just a tool to guide you in maximizing your allowances claimed. I suggest claiming two in your situation.
The general rule is that the more allowances you claim, the less withholding you’ll have taken out of your paycheck each pay period. By following the instructions on the Personal Allowances Worksheet of your W-4 Form, you will calculate the maximum amount that you should claim (Keep in mind that this worksheet will not be given to your employer or the IRS). However, you can always claim less than that to ensure that enough will be withheld from each paycheck. If you claim zero, you’ll have the maximum amount withheld. If you claim a larger amount, you’ll have less withheld. The absolute ideal scenario is to have your tax liability or refund, at the end of the year, be as close to zero as possible.
What do I have to put as exemption number as a single woman being dependent on my son on the W-4 form?
Hi Cheema,
For your specific situation, I suggest taking a look at the IRS Withholding Calculator. This will provide you with an answer based on specific information that you provide.
Not sure what happened but went to do taxes and my had me down for 10 dependents. So I got a smaller refund. Iam married with two kids one job and wife doesn’t work. How should I have filed and what could I have done wrong to make that big of a difference?
Hi Kyle,
Based on what you’ve stated above, it sounds like you recorded ten allowances on your W-4 OR your payroll department made a mistake. I suggest checking with your pay roll department and asking to see your W-4 and then comparing the amount to the amount that you see on your pay statements each pay period.
I would suggest updating your W-4 either way and claiming four allowances. The general rule is that the more allowances you claim, the less withholding you’ll have taken out of your paycheck each pay period. By following the instructions on the Personal Allowances Worksheet of your W-4 Form, you will calculate the maximum amount that you should claim (Keep in mind that this worksheet will not be given to your employer or the IRS). However, you can always claim less than that to ensure that enough will be withheld from each paycheck. If you claim zero, you’ll have the maximum amount withheld. If you claim a larger amount, you’ll have less withheld. The absolute ideal scenario is to have your tax liability or refund, at the end of the year, be as close to zero as possible.