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, Need advise please.
My husband and I married almost 2 years ago. I expect we both then were filing single. I change my withholdings to married then. Since we have had a daughter this year.
What is best for our filings? I don’t mind getting a small amount back but do not want to owe!
Husband is still filing single I believe and I am filing married and 0
Hi Brooke,
You and your husband should update your filing status at the very least as soon as possible to ‘married’. The amount of allowances you each claim will depend on how much of your paychecks you want to be withheld to cover taxes due to the IRS. If you both claim zero allowances, your refund is likely to be high. However, most in your tax situation will claim one allowance for themselves and one spouse (typically the one earning the higher amount) claim an additional allowance for each child.
What should I have on my w4 if I’m married with 4 kids?
Hi Daven,
Based on what you have stated above, you want to claim one allowance for yourself and an additional allowance for each dependent you will be claiming on your tax return. Now, if you’re spouse is employed and also completing a W-4 form, you will either want to split the amount of dependents between each W-4 OR have the spouse who earns the highest income claim the majority of dependents as allowances on their W-4 form. This option is typically most financially beneficial for spouses filing a joint tax return.
Hello Tax Advisor!
My husband works full time and i just started a new FT job as well. We don’t have kids and our current combined income is close to 100,000. We file jointly every year. He claims 1 allowance for himself on his W-4 with a “married” status.
HELP! I don’t know what to claim on mine… I think i understood i would also be a ” 1 ” and “married” status (not the “married but withhold at higher single rate” status) …. however, I’ve had some people say i should put a ” 0 ” so higher taxes are withheld to avoid owing at the end of the year. Which is correct? I want to get as close to $0 as possible when i do our taxes…!
THANK YOU!
Hi Analia,
I would suggest claiming one with a married filing status. If you claim zero allowances, you are having more of your income withheld with each paycheck to cover taxes owed to the IRS. Claiming zero will often result in a refund being issued to you. Claiming one allowance will more than likely result in hitting that break-even point of $0.00. Keep in mind that you can update your W-4 when you feel necessary and it will go into effect immediately for the following pay period. That being said, if you feel that too little or too much is being withheld, you can update to cater to your financial needs.
I am married with a baby and just got a job. How many allowances should I file? I’d like to not have to pay at the end of the year.
Hi Diego,
This will depend on a few other factors. However, you will most likely want to claim one allowance for yourself. You then want to decide if you or your spouse will be the one to claim an allowance for your child (assuming you will be claiming a dependent on your tax return). It is typically more financially beneficial for the spouse earning the higher income to claim the additional allowance on their W-4 form.
I am a single mom and need as much as my paycheck as possible. another single mom said she claimed 8 and still got 3000 back for the child tax or something. how do I claim 8?? what numbers do I put where? im a full time working parent as well
Hi Monica,
Something to keep in mind when completing your W-4 form is that you are only required to submit the bottom portion to your employer. The personal allowances worksheet is only to help you to calculate how many allowances you should claim. It is solely for your own reference. Another point to keep in mind is that every person’s tax situation differs. You can technically claim 8 allowances on your W-4 form without the IRS knocking at your door. However, if you have a tax bill from the IRS after filing, it is because an inadequate amount was being withheld from your paychecks throughout the year to cover the taxes you owe.