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!
Hi, I just recently got married and I was wondering if I should claim two on my taxes. Enter 1 for myself under line A and 1 under line C for my spouse? We are both working part time jobs. What should I claim? Also, I am pregnant and due in 1 month. Do I have to wait until the baby is born before I can enter 1 for a dependent under line D?
Hi Allison,
Congratulations on the new addition! To answer your questions, here is another article from our blog that may help you better understand in depth of how to fill out your W-4 with the new changes in your life.
Also, I would suggest taking a look at the IRS Withholding Calculator as well. This will calculate the best option for you based on a few questions that you answer about your specific situation.
I am newly married and debating on what I need to choose for taxes. I want the most back at the end of the year what should I choose?
Hi Mark,
Congratulations on the new marriage!
The amount of allowances to claim will depend on your filing status as well as you significant other’s and also if your significant other is employed or not. With any new life change (ie: marriage, a new baby, etc.), I suggest taking a look at the IRS Withholding Calculator. This application will only take a few minutes and will help you choose the appropriate amount of allowances to claim based on your specific situation.
Keep in mind that the more allowances you claim, the more money you will see each paycheck. However, the smaller your refund will be at the end of the tax year (with possibly the chance of owing money).
I am single, head of household, have one child and care for my dependent senior mother. What should my allowance be?
Hi Rose,
Since you may be eligible for the child tax credit and you are claiming head of household, I suggest referring to the IRS Withholding Calculator.
I’m single and claim 0 allowances on my W-4. Last month, my company imposed mandatory overtime for the summer months. Most of the other single employees in my division, changed their allowances from 0 to 10 for this period, with the intention of changing them back to 0 in August. Is this a good idea?
Hi Jaime,
The reason why they are doing this is because the more allowances that you claim, the less money that is withheld from each paycheck and the less of a refund at the end of the year (possibly with a chance of owing money). In other words, your co-workers are ensuring themselves to receive the most out of each paycheck throughout the summer. However it is a drastic change and may not ensure that you won’t owe money at the end of the tax year.
Ok I’m Head of Household , married with a 8 year old son and one on the way, how many exempt should I claim? And will it affect my taxes?
Hi Reggie,
With your specific circumstances, I suggest taking a look at the IRS Withholding Calculator. This will help you best choose the amount of allowances to claim. It will only take a few minutes to complete the several questions they ask you.
Keep in mind that the more allowances you claim, the more money you will see each paycheck. However, the less of a refund you will receive at the end of the tax year (possibly with the chance of owing money).