NOTE FOR 2018: The Tax Cuts and Jobs Act that was recently passed by Congress is going to change the IRS withholding tables and how we fill out W4s. Right now, we are still waiting for the IRS to supply the new withholding tables and create the new W4s. This post is about the old W4. I will be updating this as soon as I have new information. But right now, the information below is for 2017 and earlier. I do not expect the new information to be available until mid February.
-Jan
I’ve been getting a lot of questions about how many exemptions to claim on the W-4 (Employee’s Withholding Allowance Certificate) form that you give to your employer. People look at the whole 2 page form and get intimidated. For most people—you should just ignore the rest and concentrate on the little part at the bottom of page one. That’s the part in this screen shot up above. It will make your life a whole lot easier.
First, some questions:
I claimed the wrong number of exemptions on my W-4 and now its tax time and I’m going to claim a different number of exemptions. Will I get in trouble for this?
No you won’t. Your employer doesn’t report you to the IRS for not claiming the right amount of allowances. The worst that will happen is that you owe a lot at tax time or get a big refund. (Actually I don’t think of getting a big refund as being a bad thing. Probably shouldn’t call it a “worst case scenario.”) Neither of those things are crimes. It’s possible that the IRS could inform your employer to increase your withholding if the withholding on your W2 is not enough to cover your tax liability. I have never seen that happen to anyone—but the IRS is allowed to do that if they think it’s necessary.
I don’t want any tax taken out of my paycheck. Can I just claim EXEMPT?
No you can’t. Exempt is only for people who will have no tax liability at all. You might have gotten a refund last year, but it doesn’t mean you have no tax liability. Generally, someone with no tax liability makes less than $5,950 for the entire year. For most people, claiming EXEMPT is a really bad idea.
Okay, so what should I claim? Good question. Here’s my suggestion list. See what category fits your best.
You are a student, either in high school or in college. You’re not married and you don’t have kids. Your parents are allowed to claim you on their tax return (you’re under 24 years old.) SINGLE, ZERO ALLOWANCES
You’ve got a job, only one job, you’re living on your own, and you’re single. SINGLE, ONE ALLOWANCE
Now if you have a child, add another allowance for each child. For example, let’s say you’re single with 2 kids, you’d claim single 3 allowances; one allowance for you and one for each of the children.
Single like above but you’re working two different jobs, SINGLE, ZERO ALLOWANCES – because the two jobs kick you into a higher tax bracket than the withholding would show.
You’re married and only one person works: MARRIED, TWO ALLOWANCES
You’re married and you both work—you’ll each have your own W-4 and they will be different
Spouse #1 with higher paying job—claim MARRIED and all the allowances for the family
Spouse #2 with the lower paying job—claim MARRIED BUT WITHHOLD AT HIGHER SINGLE RATE, ZERO ALLOWANCES
Now this is a pretty simplified guide, but it’s much easier to understand than what is on the form. I also find that people are less likely to get into tax trouble with my rules than when you follow the allowances worksheet.
If you want a really good, accurate calculator to figure your proper withholding, the IRS has one on their website. The problem is, as I’m posting this—the calculator is down. You can use this guide for now and you can always tweak your withholding later when it’s back up. Here’s the link: http://www.irs.gov/Individuals/IRS-Withholding-Calculator
Hi Nicholas L,
You may claim fewer allowances in order to get a bigger refund. That’s perfectly fine and allowable.
Hi Marie,
I’d claim single with one exemption on the large check and single with zero exemptions on the smaller.
Hi Jan,
I make 80,000/year, paid bi-monthly, rent, single, and currently claim 2 exemptions. I’m planning on buying a house within the next couple of months, and I trying to determine how many more exemptions I should claim & how much it’ll add to my paycheck.
If I claim 10, how much will that increase my paychecks (approximately)?
Thank you!
Hello, I make less about 20,000 a year. I am head of household and have 3 kids under 18. Should I file 3 for federal or state or 4?
Can you file the child tax credit at the end of the year when you do your taxes instead of claiming more allowances ? or is the only way to get the child tax credit by adding the number of allowances? I am married with 2 kids but when I filled out the w-4 it says to claim 8 but then my no money was withheld from my check and I don’t want to owe but I would also like a refund at the end of the year.
Hi, I’m single, I receive two pensions (no state tax where I live) one check is large, the other is significantly smaller, combined earnings total 25,300/year. Not sure how many exemptions I should claim on each W4.
Any advice would greatly be appreciated!!!
Hi Juan,
I would claim at least three exemptions. If your child is under age 17, I’d claim 4.
Hi Jasmine,
If no one is claiming you on their tax return (like a parent if you’re still in school) then you could easily claim three exemptions. One for you, one for your child, and one for the child tax credit.
Hi Ashley,
Is that the worst worded line on a form in the history of the world? What in the world were they thinking?
“if your total income will be less than $70,000 ($100,000 married) enter “2” for each eligible child; then less “1” if you have two to four eligible children or less “2” if you have five or more eligible children.
Good grief! No wonder I get so many questions on this page. They don’t write these forms for normal human beings!
Okay, so you’re going to claim 2 children on your tax return. I’m guessing that they’re both under 17 so you’ll claim them for the child tax credit. So, you claim 2 for each child, that’s 4. But, you’re going to subtract one, so you would put the number 3 on line G.
And Ashley, thank you. Thank you for reminding me again how crazy this form is. I kind of forgot for a bit there. I opened up my computer today and there were 9 questions about W4s and I was thinking – “Gee, why does everybody ask about W4s, it’s not that hard.” Then I saw your question and I actually went back and looked at line G. How in the world is a normal person supposed to interpret that? I do this for a living and I think it’s hard to understand. So thanks for reminding me why I do this.
Hi Cindy,
as a single mom with 2 kids at home, if you’re only making $20,000 a year, you probably won’t have any taxes owed so I’m thinking 5 is the right amount to be claiming. Assuming that you get to claim your kids on your tax return and that they live with you, that means that you’ll file as head of household. The standard deduction for that for 2015 was $9,250. You would have three exemptions at $4,000 each, that’s another $12,000 they take off of your taxes. So that means you’d have zero taxable income. I wouldn’t be worried. The only thing that could mess this up for you is if somebody else gets to claim your kids on their tax return.
Hi Alfredo,
I would claim single with 2 exemptions on your job, but then I’d have 25% taken out for federal taxes on your military pension. You’ll have to check with your state to see how your state treats the pension to see about the withholding there. (Some states it’s taxable, other’s it’s not.)
I am married I have a child now and I am the only one that has a job so put 3 exemptions for myself, my wife and my kid. Or do I put 2 just for my wife and kid?
Also I’m the only one that works
I’m married and have kid do I put 3 or 2 exemptions?
Hi Jackie,
It depends upon how much she makes. If she makes less than $6,300 this year, then she could claim “exempt” and have no federal taxes taken out. They’ll still take out social security and medicare, but no federal tax. If she’s still claimed as your dependent and she makes over $6300, then she’ll want to claim single with zero exemptions. Otherwise she’ll get hit with owing a tax bill later.
Hi Kenneshia,
What you put on your W4 won’t get you into trouble other than not withholding enough for your taxes. My question for you is – who claims the kids on their tax return? That’s who should be claiming the exemptions on the W4.
Hi Kim,
If you’ve owed for the past two years, and you’ve fixed your withholding so you shouldn’t owe anymore, why do you want to change your withholding again? It seems to me that if you fixed the problem, leave it fixed. What am I missing?
If you want to change your withholding on your W4, then you really need to go to the IRS withholding calculator with your most recent paystubs and your old tax return and really do it right. I’m not going to mess with guessing on this one.
Hi LK,
You could claim 50 exemptions if you wanted to, but of course that would be overkill. Nine is probably good if you’re only doing it for the one paycheck.
Hi Kevin,
I always suggest using the IRS withholding calculator. Barring that, I’m guessing that your wife would claim married with 4 exemptions and you should withhold at the higher single rate with zero exemptions.
I’m a single mother 1 kid and I work part-time making less then 16000 a year should I claim my self and child I’m confused please help me
Hello,
I am a single mother of 4 working 1 job. I claim 1 child every year and my ex husband and I switch off the other 3 children every other year.
This year I will claim 2 children
I am not sure what to out in line G
Can you please help?
HI Jan,
I am a single mom with 2 kids at home. I make $20,000 a year at my job. I used the IRS calculator and it stated I should claim 5 on my W4…however it’s not hardly taking anything out of Federal. On today’s paycheck (we are paid semi-monthly) I grossed $924..but it only took .01 out. Am I going to end up owing at the end of the year?
Hi single no kids live alone starting new job 84 ,000 I have a miltary pension 23000
What should I withhold allowance /exemptions?
How should my daughter fill out her w2 to where she doesn’t get so much tax taken out of each check. So she gets her money during the year opposed to at the end of the year. She’s 18 with no kids and still live at home
I claimed my children on my W4 and now my ex-husband wants to claim the children. Will i get in trouble for changing my exemptions so late in the year?
Hello I’m not sure how to fill out my W-2 my husband and I have one child in college my husband makes more than I do we owed taxes in the past so for the last two years we had more money taken out of our paychecks now I would like to change it so that I take home more money how should I fill out my W-4/W 2?
Hi Jan,
I’m leaving my current job and want to maximize my one final paycheck. Is 9 the most exemptions I can claim for the least amount of taxes to be deducted? Than you.
Hi. My wife make over 100k a year and I just started a job make 30k a year. We have 2 kids, and I don’t want to get killed on taxes. What should we both claim?
Hi Ana,
Although 8 sounds like a lot, I’m thinking it might be right because your income is low and you have a child – that implies that you should qualify for the Earned Income Tax Credit which should pretty much wipe out your Federal income tax liability. Now for the state, you might want to only claim 2 exemptions, but for the federal, 8 is probably okay for you.
If you’re nervous about it, go ahead and claim 4- that should be really safe. 1 for you, 1 for your child, 1 for claiming head of household, and 1 for claiming the child tax credit. But if the IRS calculator says 8 – it’s probably right.
Hi Jan,
I’m not sure how many exemptions to claim. I am a single mother with one child and I will probably end up making about $10,000 this year, plus $11000 from unemployment. I used the IRS withholdings calculator and it said 8. It sounds like too many!
Hi Jan,
Thank you so much for replying back, yes it does make sense and you are right because every year I had a return and they have taken the whole thing from me!
I even with have applied for an innocent spouse and they accepted but he fighting against it, craziest thing I’ve ever been through, so unfair but I have faith and know I have to have an attorney now help me fight this!!
Thank you for the great advice I really appreciate it!!
Hi Laura,
For your new job, I’d claim single with zero exemptions. Any money you make at the new job is over and above the other job and taxed at the higher rate.
Hi Wendi,
One thing about a tax problem from an ex spouse, you don’t want to over withhold as your refund will get levied by the IRS to pay those old taxes. So until that’s all worked out, you want to always have a small balance due at tax time instead of a refund.
Since you’ve been a contract laborer, you know about putting cash aside to pay your taxes. I’d claim single with 6 exemptions (maybe even 7) and plan on tucking a little money away. Although if you’re working with a tax attorney, you could give her your actual numbers and she could crunch them for you.
Please know that this isn’t the normal advice I would give. I hate telling people to owe. But until you get your ex’s taxes off your back, you don’t want to be giving your refund away to his debt. I hope that makes sense.
Hi Jordin,
It sort of depends upon your income level. If you make over $75,000 the child tax credit starts to phase out so you don’t want to claim those extra exemptions. If you make less than that, you’re probably okay. Or you could just maybe only claim 2 extra exemptions to give yourself a little wiggle room or a possible refund.
Hi Rebekah,
Duo income no kids. It can be a bit of a tax trap. Generally, an exemption is worth about $1000 on your taxes. My gut reaction is that you should each claim one less exemption on your W4. Although it’s over halfway through the year so maybe two fewer exemptions for 2016. I’m attaching the link to the Kiplinger withholding calculator for you to try. Here it is: http://www.kiplinger.com/tool/taxes/T055-S001-tax-withholding-calculator-kiplinger/
Normally, I like the IRS withholding calculator, but for you, I think Kiplinger will give you what you need.
If you’d like a refund, you could both claim single with zero exemptions, but that’s probably withholding too much.
Hi Tia,
It really just depends. Are you married? Is there a spouse who has income added to your family? If yes, then it’s probably a good idea not to claim your child as an exemption on your W4. But if you’re not married and only working part time, it makes a lot of sense to claim your child and have more take home pay. Ya gotta eat!
Hello! I am single with one child and 2 jobs. My current job ($32,000 a year) i claim 4. My new job just started and need to fill out a w4. How many allowances should i do for the new job (its only part time making less the $6000 a year)
Hi Jan,
Okay I just got a really great job offer and filling out my paper work, I’m not sure on the W4 what would be the best for me? I am a single mom with 2 kids that I take care of full time with no child support from the dad and I am still battling a tax issue that my ex husband caused and it’s been a nightmare getting it straightened out (I now am having to hire a tax attorney to help me) so with my prior work I have just been 1099 which has been great so they haven’t garnished any wages at this point, so what would be my best option while I’m in the middle of this unfair nightmare he has created for me?
I work one job, single and have 2 children. I put 1 for myself and 2 for dependents. Now should I leave it at 3 allowances or should I add the additional 3 for line G child tax credit and make it 6? I don’t want to owe anything next tax time so I’m a little hesitant on putting such a big number like 6 allowances.
Hey there!
I am really confused by this entire process. My husband and I have owed over $2,000 for the past two years, going towards both federal and state. We have no children, and our jobs have been shifting back and forth on who is making more money each year. This year I am making more, last year he did. Is there something we can claim that will help us owe little to nothing, or maybe even get a return? I so look forward to getting a response.
Hi,
Someone told me I shouldn’t claim my child on my paycheck I should just wait till tax season to claim them. Is that a good idea does it make a difference? Will I get more tax season if I don’t claim them during the year? *I work part time.
Hi Stephani,
Congratulations on your twins! How fun and exciting!
I so wish that you were in my office sitting across from me so I could see pictures of the little ones and explain this in my loving, kind, you know what I mean voice, ‘cuz I’m not sure it will sound right typing it out like this. So, please hear the loving voice okay?
Girl – you are married! You are a team! Do you claim the kids because you own the house or does he claim them because he makes more money? I’m pretty sure you didn’t mean it the way it sounded.
I’m guessing you mean who claims the kids on the W4, since that’s the page you’re asking that on – but just in case. When you file your tax return, you will file as married filing jointly, you will both claim the children as your dependents, and you will claim the deduction for the house together as well. (And of course you’ll claim all the other deductions and credits you are entitled to.)
So as a team, it’s easiest if he claims the kids and you withhold at the higher single rate with zero exemptions. BUT – and this can be really important, if he’s not being a good team player, you don’t want to have all the tax money come out of your income while he gets more income because he’s claiming all the deductions. (And quite frankly, even if your husband is absolutely perfect and a great team player, sometimes it’s just kind of annoying to be withholding extra because you make less than your husband. I am speaking from experience here!)
So, what you can do is go use the IRS withholding calculator and use your most recent pay stubs to figure out how you should adjust your W4s. It might be a little fairer than having him claim everything and you claiming nothing.
Hi Jan,
I am married and just had twins. i am employed but my husband makes more money than me. I own a house but he is not on the title. Who should claim the kids? Me, since I own a house or him because he makes more money?
Hi Charity,
So the question becomes, who’s going to claim the children as dependents? Are you living with your parents or the children’s father? Then they may be claiming the kids on their return, in which case you would want to claim single with no exemptions on your W4. (Taxes get taken out.)
Or, are you living by yourself and supporting those kids and going to school full time – (when do you sleep?) in which case you could probably claim exempt. (No tax gets taken out.)
Good luck with school and the kids!
Hi Stephanie,
Congratulations! I think that you’ve fine claiming 2 exemptions on each of your jobs. Now for most people, I’d say no, don’t do that, but with your income being only $16,000 for the year, and with you claiming your son on your return, you should be in refund mode no matter what. Remember that you’ve going to claim the child tax credit and the earned income credit so you should have a refund even if you had no federal withholding at all this year.
hi im a single mother of 2 i have 2 part time jobs and im a full time student in college. what is the best way to fill out a w4?
Hi Ashley,
I recommend using the IRS withholding caclulator.
Hi Jeff,
If it doesn’t look like any FICA’s been withheld, you might be considered contract labor. If that’s the case, you could get hit with 15.3% self employment tax, even though your income is probably low enough to keep you from paying any income tax this year. I’d check with your employer about the FICA. If he’s treating you as contract labor, you need to know so you can adjust accordingly. If they haven’t taken out any federal income tax – that would make sense given your withholdings. But even if you only made minimum wage, they’d still take out FICA. If they’re taking out nothing, that sounds like you’re being treated as contract labor.
Hi Karen,
I would put 4 exemptions on your W4. That should reduce your withholding and give you a little more in your paycheck.
Hi! I just had a baby in March, I am single, and I work two jobs (combined earning less than 16,000/year) should I claim my son at each of my jobs? I don’t want to owe!