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 a stay at home mom of one child and my fiancé works is starting a new job. What would be the most beneficial way to fill out his w4?
Hello Brigitte,
As per our article, filling out the W-4 is entirely up to your Spouse. Keep in mind that greater allowances, less tax withheld in each pay check, which may result in a tax liability. However, fewer allowances, more tax withheld from each pay check, which may result in a refund. He may discuss this with his Payroll Department for further assistance.
Hello,
My situation is that I just got my third job which is a freelance job. My first job is full time and my second is part time. I’m single and just turned 21 but I have multiple jobs and I’m the head of the household. I’m the one paying all the bills and also supporting my mother since she got into an accident earlier this year and the rest of my family outside the US.
Can I claim my mother? I’m earning up to $50k because I calculated everything I earn from my 3 jobs, how should I update my W4 forms? Please help! I’m new to all this tax and adulting stuff.
Any help and advice is appreaciated.
Thank you for your time and have a good day! 🙂
Best,
Alphine
The IRS has a tool to help you determine how many allowances you should claim on your W-4 Form. Simply click here to use the IRS Withholding Calculator.
Further, you can refer to our blog article Can You Claim Parents as Dependents? to determine if your parent qualifies as your dependent.
Hello,
Can someone please help me determine what marital status to file for federal and state? Also how many allowances I should enter for federal and state? I’m married (my annual income is $95,000 and husband is $40,000). I’m a homeowner and have 2 year old son and a newborn expected in December 2017. I would like to get my money now rather than wait till tax season. I would also not like to owe at tax season. Please let me know what your professional expertise.
Thank you in advance!
It may in your best interest to file married filing jointly if you both wish to benefit from your children. However, because of the different income bracket, you may be taxed more due to the combined income that you both share. You may want to fill out your information with one being a joint return and two other returns being married filing separately and reviewing which one is more beneficial for that specific year. Because your newborn will be born in December 2017, you will only be able to claim 1 dependent as the other dependent does not fall under the specific qualifications to be claimed for this year.
We won’t be able to provide you a specific number of allowances for you to claim, however, you may want to consult with your payroll department for more advisement or use the IRS Withholding Calculator.
Im lost with fillin out the w4 forms. I just had my 2nd baby and became single as well. After going back to work from maternity leave, i noticed theres nothing being withheld from federal and state on my paystub.How do i fill out the new w4? My HR department is no help with this as well.
You will only be able to determine the specific number of allowances by going through the instructions on the W-4, however, from the situation that you have outlined, around 4-5 allowances would be the number you are able to claim. If you are unsure and wish to be on the safer side, the fewer number of allowances that you claim will end up having more of your income withheld for taxes. However, the more allowances you claim, the less of your income gets withheld throughout the year but you may end up owing. You can also use the IRS Withholding Calculator Tool to assist you with this matter as well.
Hello. I have been divorced since 2006. I am a single mom whose son is now 17. I was working part time and receiving child support. I was making way less than $15,000 a year for a while and slowly making more each year. Each year, still I was making less than $20,000 and on Medicaid. With help from one of my past employer, she had me claim 6 so that I can get more money out of my paycheck to support me and my Son. I have been claiming that for years and I was getting between $2500-$4400 of tax refund. I suppose because we were in low-med income. I was claiming 1 for head of household, claiming 1 for myself as single, 1 for dependent, 1 for no one claiming me, and 2 for child tax credit which all equals to 6. Now I am finally starting a new, full time job and may make more money and my Son is 17 and probably will not be eligible for child tax credit, not quite sure what to claim. I don’t want to be in financial trouble with my take home check, but I also don’t want to owe so much money I can’t afford to pay when tax time comes. What should I do? My Son doesn’t have a job yet. Can I still claim head of household, single with no one to claim me, and 1 dependent which will bring to 4 allowances? I need to make changes to my W-4, but need advise to what’s right without getting into trouble with IRS.
Thank you,
Lorena
Lowering the number of allowances that you are claiming now is a great start. As you are unsure as to what you will be receiving when you file next year you may want to claim fewer allowances. It is advised that you speak with your payroll department in order to determine the number of allowances you should take on your W-4. You can also choose to use the IRS Withholding Calculator Tool to assist you in determining this value as well.