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,
Me and my wife are going to start filing jointly. We got married last year this will be our first full year together. The W4 is confusing. Should we do married and 1 allowance each with nothing extra taken out? or married at higher single rate? Some things say yes others say no. When i do the math on the other sheet it says do 0 allowance and take extra out for the long form. If we are going to claim the interest on our house. we both make around 45k. lots of things say leave line 6 blank,
Thank You,
Hi Doug,
Congrats on tying the knot!
When you’re married, your W-4 will need to be updated. That being said, filing a joint tax return will allow you to claim tax benefits that you wouldn’t have available to you otherwise. On top of that, you will be reporting the interest for your home as well. I would suggest claiming married with one allowance each with no additional amount taken out.
I am married and filing separate and have a 22 year old daughter that is claimed on my taxes. I need to fill out a new W-4 since I am filing my taxes married/separate. I paid a lot of taxes last year filing this way. When I use the calculator it says I should claim (2) on my W-4. What should I claim to get more taken out so I am not in the same boat when I file my taxes?
Hi Dawn,
When completing your W-4, it does not consider whether or not you will be filing a joint tax return with your spouse of not. Therefore, selecting ‘married’ automatically has you in a bracket where less is being withheld from your paychecks. If you would prefer to owe less after filing but have less take-home pay throughout the year, you can select ‘married but withhold at higher Single rate’ on the W-4 for Line 3.
You can also claim less allowances than you already are. The less allowances you claim, the more income is withheld from your paychecks to cover taxes you owe. If an excess amount is withheld, the IRS (or state) will issue you a refund to grant the difference). The more allowances you claim, the less is withheld from your paychecks. This will sometimes result in owing the IRS (or state) after filing your tax return if too little is withheld for taxes.
Hello,
It’s been quite a few years since I’ve worked. I’m finally getting back into the swing of things now that all of my kids are school aged. After 4 years, I’m starting a part time job at $10/hr. Bi-wkly paychecks. I live with my boyfriend and I have 4 children. Last year he claimed HOH, myself and kids as dependents come tax time which resulted in a pretty nice return. This year I’m claiming myself & my 3 children for the EITC, he is not claiming us. My question is this.. Because I’m working and putting in half of the household expenses (bills,rent,etc.) Can I claim HOH as well or can only one of us claim HOH? We will be filing seperately. We are not married and we split all expenses down the middle. I don’t really remember how to fill this W-4 out.. So before I hand it in, this is what I did..
Line A, I put 1..for myself.
Line B, I put 1.. Because although in a relationship, I’m not married which is also considered “single”.
Line C, I put 0. I don’t have a spouse, and I only work one job.
Line D, I put 3. I have 3 children I plan to claim come tax time.
Line E, I put 0. I am not sure if both my boyfriend and I can seperatly claim HOH, if I can..I’m going to change it seeing as we file seperate and we won’t be his “dependents”.
Line F, I put 0. I don’t pay anyone for child care.
Line G, I put 5. 3 qualifying children, minus 1 because i have two to four children..2+2+2-1=5
And Line H, I have blank right now because adding “A-G” would equal 10..which just don’t seem right.
I know the higher the numbers.. the less they take out of my check and chances I’ll owe the IRS which I don’t want. I want them to take..not a ton of taxes, but enough so I won’t owe.. and still receive the EITC. I’ve never owed before, I don’t want to start now. Receiving the refund at the end of the year is always nice, I like the refund. What do I do..something in my gut is telling me what I filled out is not correct. I also feel I’m making this harder than what it really is. Please help me. I’ve never been more confused in my life!! Please help me. Thank you!
Hi Deeanna,
Congratulations on the new job!
When completing your W-4 form, if you use the personal allowances worksheet, you’re calculating the maximum amount of acceptable allowances based on IRS standards. That said, you can always claim less. The more allowances you claim, the less income will be withheld to cover taxes you are liable for. In your case, claiming 10 allowances is a bit high and will most likely result in owing the IRS come tax time (or at least a smaller refund). A good rule of thumb to follow that tends to work for most tax situations is to claim one allowance for yourself and an additional allowance for each dependent you will claim on your tax return.
In your situation, you’ll want to decide who is claiming your children as dependents. You are not filing a joint tax return so you may want to see who will benefit more from child tax credits and and claiming dependents based on each income earned.
Although overwhelming, our tax team is here to help so you can always give us a call. You’ll find our contact information HERE.
Hi,
I just started a new part time job and need to fill in a W-4 form. I am married and file jointly with my husband who earns considerably more than myself. We have 3 kids. I also have 2 other wartime jobs but pay very low taxes. Who and how many each would you recommend filing the allowances?
Hi Maria,
Congrats on the new job!
Since you are married and filing a joint tax return, it is most beneficial in most cases for the spouse earning the higher income to claim all or most of the allowances for dependents and other tax benefits. In your situation explained briefly above, I would suggest that you only claim one allowance for yourself at your higher earning income job while your spouse claim an allowance for himself and an additional allowance for each eligible dependent (three in your case) that you plan on claiming on your tax return. If you are required to complete a W-4 form for your other lower income jobs, I suggest claiming zero allowances for those.
Hello,
I need to update my W4 form for work since I just had another baby. My husband and I both file jointly and want to know what to put on each of our W4’s for our jobs. We have a total of 5 children. I make more than my husband so would I say claim 4 and he would claim 3? Our goal is to get more money in our paychecks rather than get a large refund. Any suggestions would be appreciated. Thanks.
Hi Alysia,
Congratulations on the new addition!
When filing jointly, it is most beneficial for the spouse earning the higher income to claim the majority or all of the allowances for dependents on their W-4 form. Based on what you have stated above, you would be the one to claim more allowances. You are on the right path to see more money in your paychecks as opposed to a larger refund since you are claiming seven allowances in total. As of right now, you are splitting the amount of allowances pretty evenly between the two of you. If you are earning a substantial amount higher than your husband, I would advise you to claim 5 or 6 allowances and he claim one or two. If this puts too much of a strain on your paychecks, you can always update your W-4 again to reflect the necessary changes.