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!
I recently got married and need to update my w4. My husband is head of household and we have 2 children. My job is very part time so I don’t make much money from I but would like to know what to put on w4 so I have more money taken out of checks and possibly larger refund at the end of the year.
Hi Lorelei,
The lower the number you report on your W4, the higher the amount withheld from your pay. I’m not sure of the number you’re currently claiming so I can not give you an exact amount but would suggest lowering that number.
I have two(2) children and myself, Is it true that you receive a larger return if you claim zero(0) dependents on your W-4 then claim them when I file?
Hi Vanessa,
If you claim a smaller number on your W-4, you will receive a larger refund when filing. However, you will have more taxes withheld from your paychecks. If you would like an even balance, I would suggest claiming 2 on your W-4.
Hello Tax Advisor!
I am single, recently graduated, and living at home with my parents who claim me as a dependent.
I currently work per diem at a home health agency, and make $50 per patient visit. When I filed a W-4 form for the home health agency, I put “0” for allowances.
Recently, I was hired at a private research company per diem as well, making $25 per hour. I’m filling out a W-4 form for this new job, and I am unsure what to put down for allowances. Do I have to put down “0” for allowances, so it matches with my home health job’s W-4 form? I’m just unsure, since now I have two jobs, both with per diem status.
Sorry! Correction, my parents no longer claim me as a dependent, so I am an independent now.
Hi Alex,
Congrats on the new job! It’s always a good idea to claim 0 or 1 on your W-4. By doing so, you’ll have the maximum amount of tax withheld and will ultimately receive a refund when filing your taxes. For your specific situation, I would suggest claiming 1 at the research company per diem job.
Hi, I’m a student, single, with no dependents, living at home with parents who claim me on their taxes. I claim single 1 on my w4 (work part time) but they don’t take enough tax resulting in having to pay back. Is there a way to have extra tax taken out or can I claim single 0 even though the form says claim 1 for youself?
Thank you
Hi Mj,
If you would like extra tax taken out of your paychecks, it’s best to claim your W4 to 0. Claiming 0 means the maximum tax will be withheld and a larger tax refund when filing.
Best of luck in your studies!
Hi Tax Advisor,
Hoping you can help me out…My husband and I went to get our taxes done for 2014 and we were told we actually owe about 1000 for 2014. I was told that it was most likely because we didn’t fill out our W-4 forms correctly……We are both employed full time but I make more than he does and we have a son……I just want to make sure that for 2015 we don’t run into the same issue nor do we have too much taken out…Who should claim our son in the w4?Since I make more should i claim him? Would i be the HOH? Also for line G, we dont make more that 100K and since we have a son would one of us add 2 to that line?? Then based on the instructions on the bottom of the first page we would need to fill out the “Two earners/multiple job worksheet”is that correct?
Thank you for your help.
Hi Veronica,
Sorry to hear that you were surprised to learn you owe the IRS tax due. This actually happens to many tax filers after they’ve had a change in life circumstances (such as having a child, getting a job, leaving a job, etc.) but never got around to updating their W-4 form.
For your situation, you should be claiming one on your W-4 form and your husband should be claiming two on his form (or you can reverse this). This means, between you and your husband, the total number claimed would be three. The larger number you claim (so between the two of you, four, five, etc), the less tax will be withheld from your pay but you’ll be forced to pay when filing your taxes (just as you did this year). The smaller number you claim (three, two, one), means more tax withheld from your paychecks but a larger refund when filing.
You won’t be able to claim Head of Household because you are married (unless you and your husband do not live together). This filing status is for filers who are unmarried or married but do not live together and file separate returns. To learn the HOH criteria, I suggest checking out our blog post on this topic.
Best of luck!