The last thing you want to do is frantically run up to your boss asking “How many allowances do I claim on my W-4?”.
Being aware of the number of allowances you are claiming on a Form W-4 [Employee’s Withholding Allowance Certificate] is important for a variety of reasons. Most importantly, the number of allowances you claim on a W-4 determines the following;
- how much tax will be taken from your income (aka the withholding amount)
- the size of your tax refund
Steps to filling out a W-4
You’ll need to follow four simple steps when filling out your W-4 Form:
- Fill out your personal information (Name, Date of Birth, Address, Marital Status)
- Know the number of personal and dependency exemptions you are claiming on your tax return.
- Based on the number from step 2, use that number to help determine your number of allowances.
- Don’t forget to sign the W-4 and turn it into your employer!
The allowances you claim while filling out a W-4 if you are single will differ from the allowances you claim if you are married or have kids.
Claiming zero allowances
- The maximum amount of tax is withheld. Meaning, when it comes time to file your tax return you will most likely receive a refund.
- You’re being claimed as a dependent on someone else’s tax return.
Claiming one allowance (ideal if you are single with one job)
- You’re single and have one job. Claiming one allowance will most likely result in a refund when you file your taxes.
Claiming two allowances
- You are single. Claiming two allowances will get you close to your tax liability but may result in tax due when filing your taxes.
- You’re single and work more than one job. Claim one allowance at each job or two allowances at one job and zero at the other.
- You’re married.
Claiming three allowances
- You are married with one child.
Claiming additional allowances
- File as head of household if you are eligible. You are able to claim additional allowances.
- You had at least $2,000 of child or dependent care expenses that you plan on claiming credit
- You’re eligible to claim the Child Tax Credit
Can I fill out a new W-4 form?
Yes, employees can submit a new W-4 form to their employee at any time during their employment. Have you recently started a second job, had a baby, or tied the knot? Life changes such as these should encourage you to update your W-4 withholding.
A great tool to help you while filling out a W-4 is the IRS Withholding Calculator, located on the IRS website.
Claiming zero allowances means less take home pay, but a bigger tax refund during tax season.
The number you report on a W-4 will ultimately determine your take home pay and your tax refund. Don’t write down any number. Take the few extra minutes to really assess your situation and fill in the W-4 accordingly. By doing so you’re less likely find yourself in a difficult financial situation.
Then, when you’re ready to file your taxes, you’ll have a heads up on whether or not you’ll be receiving a tax refund!
I am married and we will filled jointly we have a child and we both put MARRIED 1 on our W-4 is it a good thing or not please. we don’t want to be in trouble with the IRS and of course we are looking for a big refund
You shouldn’t be penalized for giving the IRS too much.
Hello i just recently went over my w-4 and i been freaking out cause I filled 0 for allowance and exemptions but its just me should I have put 1
I owe IRS 0ver 5,000 from not getting enough taxes withheld for 3 years.
I switched my w-4 to 1 so if I get a refund next year at least it will pay off some of the debt. i am on a pymt plan with IRS
now at 50.00 a month but that will take forever with Interest accruing. So is claiming 1 now the best option at this point?
single one job. 45.000 per year
My wife and I have recently gotten married. I am a full-time worker and she is currently doing an internship that’ll hopefully transition into full-time soon. Before the marriage, I claimed 0 allowances and now I believe I should claim at least two. Any suggestions? Thanks!
You should claim at least two allowances on your W-4 in order to receive as much of the income that you earn throughout the year as usable income within the year.
Thanks! Also, Do I claim 2 allowances under the FED allowances as well as the State allowances? Or do I put 1 allowance for each?
I’m a single mother with 2 kids and i’ not sure how many allowances i should claim, i always claim 0 but now i make more money and i’m not really getting much in return and also my one of my girl is 16. Any ideal how many allowances i should claim.
There would not be an ideal number to claim as there is a wide range of factors that could determine allowances. For an accurate allowance amount, it is advised to follow the instructions and worksheets on the W-4 form.