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!
My son is 18, has 1 more yr in school and just got his first job. I am married with 1 other child. I still can claim his as a dependent this coming tax yr so I was wondering how many allowances he should claim on his taxes and because I can still claim him, what will happen to his taxes? Will he have to pay?
Hi April,
Students who are dependents on their parents’ tax returns will typically claim zero or one allowance on their W-4 form. Your son can still file a tax return and be issued a refund for the income he earns over the year. When he files a return, he will just need to indicate that he can be claimed as a dependent on someone else’s tax return (box 6A). Claiming zero or one allowance on his W-4 will most probably not cause him to owe the IRS after filing (whether you claim him as a dependent or not).
Line B says enter 1 if your wages from a second job are 1500 or less…
Is this per year or month?
Thanks
Hi Kelsey,
This amount refers to the total wages per year.
Hi,
I have questions that my tax guy has misinformed me on and has me owing money apparently. I’m single, with no children. Last year when I filed, I had two part time jobs. And I had file 1 (since I figured I’m filing myself) on my W4. I ended up owing over $500. He (my tax guy) told me it’s because I should’ve put 0 dependents. So I did that.
I quit one of my jobs in Sept and became full-time at the other one and left my dependents at 0. He’s now telling me I owe more that $1500 for this year. And I’m baffled. I haven’t even allowed him to file me all the way through. I plan on taking my paperwork elsewhere.
Can you please explain this to me so I can get more clarification and finally get this settled.
Thank you.
Hi Regina,
Based solely on the information you have provided above, it seems unlikely that you would owe that much. It is very common for taxpayers in similar situations to yourself to claim either zero or one allowance on their W-4. For a second opinion on what you owe on taxes this year, I strongly suggest taking a look at our tax calculator. It’s free and won’t ask you for any personal information. It will calculate the amount you should be refunded or that you may owe the IRS based on your income, filing status, etc. It will also provide you with a breakdown of how that amount was calculated.
Hi
I’m a single father with 3 kids whom receive child support. I was wondering how to go about filling my W4 form this year because I’m planning on claiming my oldest next year. Then alternating with the other two the year after.
Thank you
Hi Ricky,
If you plan to claim one dependent child this year and two dependent children next year, then you can claim additional allowances on the years when you plan to claim two. You’ll most likely want to decrease that amount on the years that you only claim one.
i’m a single mother, work full time and only have 1 dependent, I don’t own a home but i claim head of household. I live in Arizona, I need to get more money from my check. How many allowances can i file to pay less federal, i get a refund anyway because I have one dependent.
Hi Sandra,
Based on what you have mentioned in your comment above, I would definitely suggest using the Personal Allowances Worksheet on page 1 of the W-4 form. This worksheet is not required of you to complete but will calculate the maximum amount of allowances that you could be claiming based on your personal tax situation. Keep in mind that the more allowances you claim, the less is withheld while the less allowances you claim, the more is withheld. If too little is withheld, you will end up owing the IRS after filing. If too much was withheld from your income, then the IRS will issue you a tax refund. The amount you are actually paying in federal tax is the same no matter how many allowances you claim. The allowances on your W-4 just determine when you will be paying.