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 am recently married and trying to figure out how to fill out the two earners worksheet. My husband has a full time job and I work as a full time contractor; my hourly wages are taxed however most of my check is in non – taxed stipends. Do I include the total wages or just the hourly pay when figuring for tables 1 and 2?
Hi Tina,
When referring to Table 1 and Table 2 on the Two Earners/Multiple Jobs Worksheet, you would use your total annual wages. Keep in mind that you ONLY need to complete this worksheet if the directions under Line H of Page 1 direct you to.
Hello,
I started a new job two weeks ago and am full-time salaried, however, my former job asked me to continue working for them on weekends until they can find a replacement. I am single and want to know what will happen if I haven’t/failed to fill out the multiple earner worksheet? Will this result in me owing money at the end of the year or what are the consequences? Also, on my w4, the only allowance I indicated was that I couldn’t be claimed as a dependent by anyone else.
Hi Drew,
You ONLY need to complete the Multiple Earner Worksheet if the directions under line H on Page 1 of the W-4 form instruct you to do so. If you are instructed to, you can update your W-4 form and submit it to your employer. It will go into effect within 30 days.
As far as allowances go, I would advise that you claim one on your W-4 form. This will allow a sufficient amount of taxes to be withheld so that you do not owe the IRS a large tax bill after filing for the year.
I started my new government job in August of this year. I am a single mom. Should I claim 1 on my W4?
Oh and should it be 1 for federal and state withholding?
Hi Heli,
Your W-4 form only applies to your federal taxes. State withholdings are based on which state you are earning an income from. These are monitored and administered by the state. You will see a 1 on your pay stubs and W-2 at the end of the year next to the state withholding if you are living and/or earning an income from a state that withholds income tax.
Hi Heli,
Based on your tax situation described above, you should claim one allowance for yourself and an additional allowance for each dependent you are claiming.
Hi,
I am single and have been working at 1 job and my job automatically filed 0 for me on my W4. I just accepted a second job and am trying to figure out how to fill out this W4. I anticipate that I’ll working full time at my original job and <20 hours at this new job. Should I file 0 as well for this new job or, do I file 1?
Hi Rebecca,
Congratulations on the new job!
I just want to touch on the first bit of your comment above. Your employer cannot legally “auto-fill” your W-4 form and decide what they will be withholding from your paychecks to cover tax. Claiming zero allowances allows for your employer to withhold the maximum amount of taxes from your paycheck to cover what is owed to the IRS. Based on what you have stated about your tax situation above, you will most likely be issued a refund after filing due to too much tax being withheld. If you feel that you want to see more money from each paycheck throughout the year, you may want to consider updating your W-4 to claim one allowance.
Now onto your other job. Since you will be working part-time at the new position and full time at your first job, you have a two options that will be most beneficial to you:
– claim 0 at full time and 0 at part time: this will most likely result in a refund being issued to you since you will be having the maximum amount of taxes withheld from your paychecks
– claim 1 at full time and 0 at part time: this will allow you to have a bit more take-home pay than the first option but will still most likely result in a refund from the IRS
Hello,
I just started working at a new job and I am needing some help figuring out what to put on my W4. I am single with one job, and one child. I was thinking I should claim 2 but I am not sure? Do you have any advice? If so, please share as well as how you arrived at that decision.
Hi Ieesha,
Congrats on the new position!
I would advise that you claim two allowances on your W-4 based on the tax situation described above. A good rule of thumb to follow is claim one allowance for yourself and an additional allowance for each dependent that you will be claiming on your tax return. Of course, there are special situations that would cause you to claim more or less allowances. However, that would be my advice to you based on your tax situation.