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 i just started working this December 13 will i beable to file taxes and claim my 2 babies. I claim 0 on my w-4
Yes, as long as there isn’t anyone else claiming them. If you want to receive a large check each pay period, you can claim a larger amount, considering you have two children. You can claim 1, 2 or even 3. The higher number you claim, the larger your tax will be and less likely that you receive a refund when filing your taxes. The lower the number you claim on your W-4, means the smaller your check each pay period because more are taken out in taxes and the more likely you are to receive a larger tax refund when filing your taxes.
Tax advisor, thank you. So I’ll go ahead and change my status on my W4 when I get to work. I do claim 4 already as it is but my status is single. I won’t be owing next tax year correct by changing my status? && yes, I do provide more than 50% between me and my boyfriend. So when I change my status, when I get my pay check that means they take less taxes & I get more money on my checks correct? Thank you again!
Can anyone answer my question?
I just started working full time a couple months ago and didn’t think to check my pay stub until this pay period. I’m married, my husband’s check is well more than mine so he claims myself and 3 children when we do our returns. I claimed my children along with putting I was married on my form, I’m now being told because of that my cheeks are not high enough to withhold federal taxes. This sounds completely wrong to me and I don’t want to have issues when we do our claim.
Hi Veronica,
Totally understandable… W-4s are often confusing! I’ll break it down for you; First, the higher number you claim on your W-4, means the lower amount of taxes taken out of each paycheck. Also, the lower number you claim, the more taxes will be taken out, and the higher your refund will be when filing your taxes. That means, you have to be mindful to not claim too high of a number (or you will end up paying a lot come tax season) while still claiming enough so you aren’t paying an excess of taxes each pay period. It’s also good to note, if someone else is claiming you, you can not claim yourself and will need to claim 0.
Second, when it comes to children, you and your husband can jointly claim your children. Meaning, both of you can’t claim all of your children. You can split it. For example, you can claim a total of 2 of your children, so with yourself you would claim 3 while your husband would claim 1 of your children, with himself he would claim 2. Or in a totally different situation, your husband could claim all three children (like he did), so he would claim 4 with himself and you would claim 1. As you can see, in both situation the numbers claimed adds up to 5 (because there are five people in your household). If your husband claims you and your children, you will claim 0 on your W-4.
It sounds like you both claimed your children. You (and/or your husband) should ask your employer to change your W-4 as soon as you can. If not, you will probably end up paying higher taxes when filing (considering you claimed too many). Good luck!
I claim head of house hold and I have 2small children should I put 3 ,4 or higher. I want more money in my paycheck as possible but I don’t want to owe..I made 24,000 this year..If I put a 4 will I still get the child earn income credit when I file?
Hi Lily,
The Child Earn Income Credit is based on a variety of factors. To know if you qualify, go to the IRS website EITC page \
I would suggest claiming 3 on your W-4.
Hello again. I’m sorry I didn’t add this to my previous question. My boyfriend has a job, can he claim “0” or exempt & I claim him? Is that possible? Or we have to be married to do that? Thank you again.
Hi again Donnah,
Yes, you can claim your boyfriend as a dependent according to the following requirements;
1. You provide more than 50% of his support.
2. If he lives in your home.
3. If he makes less than $3,650 during the tax year.