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 Tax Advisor, I need help understanding this.. I have 3 kids and I live with my boyfriend (which is the father of my kids). I’m currently claiming “Single” plus my 3 dependents. I make more money & I put more money on the table, so I should change my status to Head of household correct? & still claim 3 (kids). When it’s asking for Total Exemptions does that mean my total is 4? since I will be claiming HOH plus 3 so equals 4? Is that right? Or just total 3? I need as much money as I can get every pay check since I worked hard for it. Will I owe money to Uncle Sam when the following tax time comes? Please help. Thank you.
Hi Donnah,
You can claim head of household if you meet the following;
1. You are unmarried (yes you meet this one)
2. Have paid more than half the costs of keeping up a home for the tax year
3. Have a qualifying person who lived with the head in the home for more than half of the tax year. (Yes, you do)
If you meet all these than you can file as head of household and claim 3. The means you would be entitled to a larger standard tax deduction.
On your W-4 you can claim 4 and will receive more each pay period.
hello, I was told that I can file 3 on my w4 1 for myself 1for my child and 1 or head of house hold and that’s what I did.i do not make a lot. I made 9,000 this year will I owe or will I be ok???? my friend file 2 and they tok the same amount from her that they took from me
Hi Ieisha,
You can claim 3 on your W-4 if you meet the requirements of being head of household. They are as follows;
1. You are unmarried
2. Have paid more than half the costs of keeping up a home for the tax year
3. Have a qualifying person who lived with the head in the home for more than half of the tax year. (in your case, that would be your child)
If you meet these head of household requirements you can claim 3 on your W4 (as long as no one else is claiming your child).
It’s good to remember when filling out a W-4, the higher number you claim, the less taxes are taken out (and you could end up paying when filing) and the lower the number you claim, the more taxes are taken out and you are more likely to receive a refund when filing your taxes. In your case, you can claim 3 if you meet the requirements.
Best of luck!
Hello, so I’m married and have two kids, it would be on4 section H on my w-4? But when I turn main to my boss it was 7? MAYBE IT IS WRONG? HELP, THANKS
Hi Martha,
The total number you should claim W-4 should not be 7. You and your husband should claim a combined total of 4. That means you should claim 2 and he should claim 2 or in a different scenario, he claims 3 and you claim 1, etc.
The higher number you claim, the less taxes are taken out from each paycheck, but the more you could end up paying when filing your taxes. The lower number you claim, means more taxes taken out from each paycheck, but the more likely you are to receive a tax refund when filing your taxes. If you and your husband claim a combined total of 4, you should be fine.
Hello, i am reading your respond to Martha question… but what do you put on line A-H to add up to 4??
Hi Mary,
The response to Martha was referring to splitting the amount of allowances claimed between her and her husband. Basically, she would claim one on line A for herself and claim one on line D for a dependent. Her husband would also complete his W-4 the same way. They are essentially splitting the dependents(children) between themselves and each claiming two to add up to four allowances.
hello I just moved my family from TN to PA to be closer to her family. I am working and she stays home with our 2 boys, when I filled out my tax form I put 2 down should I have put 4 ? I don’t want to pay at the end of the year but I need as much in my check as I can get. what should I do ? thanks for the help
Hi Chris,
IF you want as much as possible from your paycheck and don’t want to pay during tax season, you should probably change it to 3 or 4. If you put down 2, that means more taxes will be withheld each pay period and you will most likely receive a refund.
Hi. I filled out a W-4 form for my new job yesterday. Now I believe I may have done it incorrectly. I am single and have 2 small children. For line G, I put 2, should I have put 4?
Hi Ahsha,
Two is fine, it just means you will most likely receive a bigger refund come tax season (and you’ll have more taxes taken out of your paycheck each pay period).
i am in the same situation.. for line a i was told to put 0..is this correct and i’m not supposed to be 1? line b i entered 1.. line c 2..line e 1 line f 0 and g 2.. so the total at h is 6.. is it supposed to be 7 or leave it at 6.. i want to pay the taxes i need to pay so i do not owe at tax return.
Hi Sarah,
The general rule is that the more allowances you claim, the less withholding you’ll have taken out of your paycheck. By following the directions on the Personal Allowances Worksheet of your W-4, you will calculate the maximum amount that you can claim. 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 taken out. If you claim a larger number, you’ll have less taken out. 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.
I suggest taking a look at the IRS Withholding Calculator. It only takes a few minutes to complete and will give you the most accurate amount of allowances to claim in order to reach that break-even point at the end of the tax year.