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
My fiancé and I have been together for about 20yrs, however still not legally married. we have 2 kids. I have been claiming single and 4 and head of household. I have been the only one in the house hold working till recently. Just this year(august) my fiancé took a part-time job as a substitute teacher. She put on her W4, single and 1. Her gross is going to be about $615.00 every two weeks. Also my daughter had a part time job, where she worked for a few months on Saturdays and her gross during that whole time was about $800 and the only thing taken out of her checks was FICA and Medicare. My question is since my daughter only made about $800 and my fiancé just started working now can I still claim head of house hold? And does either one of them need to file their own taxes? I guess it would be simpler if my fiancé and I just get married and file jointly. HELP!!
Hi! Filling out my W-4 for a new job and I’m confused! I used to just claim 0. But I have a daughter now… I’m single with 1 child (NOT head of household), and the form states to write 2 for each eligible child for the Child Tax Credit. Do I claim 5!? (Line A= 1, Line B= 1, Line D= 1, Line G= 2) I have no problem having the most withheld so I get a nice refund at tax time. What should I claim!?! Thanks for your help!!
Hi Melissa,
My knee jerk reaction is yeah, that’s probably okay. But–and this is important. I have no idea what your income is. If you and your husband both have fairly high income–whoa, you might not be withholding enough. If your income is low–you might be able to get away withholding less.
That’s why the IRS withholding calculator is really handy. Here’s a link: http://www.irs.gov/Individuals/IRS-Withholding-Calculator
Or–if you owe for 2014, then claim fewer exemptions next year. If your refund is really big, then claim fewer exemptions.
Married with one child…both of us work and oddly earn the same amount. We are currently claiming three allowances. He does two, I do one. Advice?
Hi Danielle,
Congratulations on the new baby!
Okay, so you are the main bread winner and your wife is a stay at home mom. In that case I would claim 3 exemptions. You, your wife, and your child.
At $30,000 a year, you might even qualify for the earned income tax credit, but with your wife’s income included you might not so I’d keep the exemptions at 3 for now.
You do not count the money that you receive as a gift from family members as income so that’s not relevant.
Now, since your wife was working earlier this year, I would not claim 3 exemptions yet. For the rest of 2014, I would only claim 1, because her income will kick you two into a higher bracket, but then switch to 3 exemptions for 2015.
You will be filing as married filing jointly, and you will be claiming your baby. So your tax return will have 3 exemptions.
Being married really messes with figuing out the exemptions. To get it right down to the nose, you can use the IRS exemption calculator: http://www.irs.gov/Individuals/IRS-Withholding-Calculator
I’m thinking that claiming 1 is sort of safe, but if you can get away with claiming more exemptions without it hurting you, then you should because babies are expensive and having more money in your pocket now would really help.
Congratulations! I just love babies.
First, I am in a same-sex relationship. We live in Missouri, which does not recognize same-sex marriages. We got married in the state of Illinois. When the federal government ruled that they will recognize same-sex marriages if you are married in any state, Missouri decided to allow same-sex couples to file as married if they are doing so for their federal taxes. So, for tax purposes, both the federal and Missouri government recognize as being married.
My wife recently gave birth to our son. She had a job, but is quitting once her FMLA leave is over. While our son is not legally mine, yet, I believe I can still claim him as a dependent. Is this correct?
Would I also claim my wife as a dependent on my W-4 for both federal and Missouri? I am updating my tax information with my employer, and the MO-W-4 says that if your spouse works to not add them as an allowance, but if they do not work to add them as an allowance. She did work, but not longer works, so would I add her or not?
I think I should end up filing with claiming 3 (one for myself, my spouse, and our child). My yearly salary before taxes is just under 30k. My wife’s was about the same, but will be much less since she didn’t work all year. She also gets paid hourly for a school district, so she gets paid significantly less during the summer.
Also, I am not sure if this affects anything, but her parents give us money every month so that my wife is able to stay home with our son. Income from them is about half of what I make a year post taxes.
Thank you!
Hi Jessica,
I’m thinking that 6 may be a bit much–but if you qualify for EIC, then maybe not. If your income is over $30,000 a year, I’d pull it back to 3, but if it’s lower, then 6 might be okay.
To know for sure, use the IRS withholding calculator: http://www.irs.gov/Individuals/IRS-Withholding-Calculator
Now, this will tell you what to withhold for the rest of the year — and since I think you were withholding too much before, this may have you not withholding enough next year–so you’ll want to adjust again in January.
Oh–most importantly, congratulations on your new baby!
I’m 29, single, living on my own, one job, and just had my first child in April. Up until now I was claiming 2 exemptions; now I claim 6, but I feel like this is too many. Should I simply still be claiming 2? How should I be filling my W-4 out, just as single w/on dependent (no head of household, etc.)?
Hi Sharon,
First and foremost, I want to recommend the withholding calculator: http://www.irs.gov/Individuals/IRS-Withholding-Calculator
That’s going to give you your best answer. First–right now, you’ve been withholding 4, so I’m thinking you’ve done that for half a year already. The calculator and look at what you’ve done, where you’re heading, and figure out so you get the most out of your checks now to get a zero refund for the end of the year.
Then you’ll want to change your withholding again in January, but getting the extra money now is good. (If you want a bit of a refund, the reduce the exemptions the calculator recommends by 1 or 2.)
Now, about your exemptions. 1 for you, 2 for the kids, 1 more for head of household filing status. So 4 makes sense.
You won’t get child tax credits because your kids are too old. You will probably get a college tax credit, but without other numbers, I can’t compute that for you. Is he getting a scholarship or are you paying tuition? Taking a loan counts as paying tuition.
Your son’s income does not play into the calculations at all.
If your son is not getting free tuition, you can probably claim 5 exemptions, maybe 6 depending upon how big his credit is, but I think that with 8 you would owe–unless you’ve already paid in more withholding than necessary.
That’s why I like the calculator. You use your real numbers and it’s pretty accurate. Give it a try.
Hi Eileen,
Sorry, but this is my job and I get paid for it. Once you ask me for numbers, then that’s something I have to charge for. I still need to eat!
Hi Danielle,
Your fiance’ won’t be able to claim you as a dependent any more since I am assuming that you will make over $3,600 a year once you start working.
If he will continue to claim the children on his return, then you should claim 1.
Hello. I live in NC. I’m a single mother of two, a 17 year old, and a 19 year old. I’m back in college part-time and I have a student loan. I am about to start a new job making 33,500 a year paid bi-weekly. My son is a sophmore in college, and working on campus making about 500.00 a month, he also has a student loan. I’ve always filed head of household. I would like to get my money during the year to help meet expenses, but I don’t want to owe. I’ve had some people tell me to claim 4 exemptions, and some tell me 8 to get all my money. Then some say if I file 8 I will owe. How many would you say that I should claim?
You answered the following comments recently stating I should claim 1, however I have a second question to it:
I have been with my fiancé for many years now. we have two kids and he claims head of household as he is the only one who works. However I just recently got a job as a substitute teacher. What should I put on my W4.
My fiancé claims me as well as our two kids (head of house hold), since he claims me as well and he has the bigger income do I need to file my own tax return or does he still include me on his tax return(head of household). Also since he claims me as a dependent, shouldn’t I claim zero. a little confused here
Hi Jan,
Thanks so much for your answer! Can you tell me what to expect the state of Calif to take out of the $1095?
Hi Eileen,
At 1095 a month, you’re looking at about $13000 a year. Now if that’s your only income, that doesn’t leave you with very much taxable income. So you’re looking at about 300 – 400 worth of taxes.
Of course, if you have other income, then your taxes will be higher.
Since your pension company will be taking out the 20% on the lump sum payment, you’ll at least get the over payment back when you file your 2014 tax return.
For your monthly withholding, I’d claim single and 1 exemption and they’ll take the money out. At single with one exemption they’ll take around $60 a month for federal.
Hi Candace,
You and your fiance’ will be married filing jointly and making close to $80,000 a year. There’s no EIC, so the only refund you’ve got is based upon how much you’re withholding. But you’re both in bankruptcy and living paycheck to paycheck.
You leave me with too many questions. My best recommendation is to go to the IRS withholding calculator. I hate to give you any advice because I’m seeing problems that you haven’t even mentioned and I really don’t want to be responsible for getting you into tax trouble. Sorry.
Hi Danielle,
You should claim single with one exemption. Come tax time, you and your fiance’ may wish to see what’s the best way to file for your family, but if you claim single and one, you’ll be withholding the right amount for if he claims both children again.
Hi Naomi,
A mother and a college student? Why not file? You’re probably a tax refund waiting to happen! Plus, if you want to get financial aid for college you’ve got to file in order to fill out the FAFSA.
I can think of no good reason not to file.
Okay, a little story for you. I once represented a woman who didn’t file her taxes and she got a letter from the IRS saying that she owed about $15,000. Ouch! But, really she was a mother with a child and she should have had refunds amounting to over $8,000! But because she hadn’t filed, she lost a lot of the money because it was too late to claim the refund.
Have I convinced you to file yet? I hope so.
Hi Alexis,
Claim single, 1 exemption. Skip line A, go to the bottom and put a 1 on line 5.
At 24, you parents probably can’t claim you anymore.
Hi Trinity,
The thing about having two part-time jobs is that it messes you up taxwise. I recommend claiming zero exemptions on both. Otherwise, neither job will withhold enough.
I always recommend checking out the IRS withholding calculator. It might even suggest you withhold a little extra.
Hi Kat,
my guess is that the IRS withholding calculator is giving you big numbers is because you’ve been withholding too much and if you want more in your paycheck and no refund, you probably can claim a whole bunch of exemptions.
That said, if you are the only wage earner and you are married, claiming married with 2 exemptions would be normal.
If you’re a little nervous about claiming too much, go for married with 4 exemptions for now. Then Switch down to 2 when January comes around.
Hi Jan,
I lost my job in Nov 2012 and still haven’t found another job. I just turned 61, my husband died in 2008. I have a pension which I applied for and is in the process now. I should get payments started by Nov. I am going to receive an Option Pkt in which I believe I have to decide what exemptions to take on the payment I receive. It will be $1095 a month. I am going to receive a one time bulk pmt as the first payment. They dated my claim for May 1, 2014. So this may be 6 or 7 months worth of payments. I read online that they have to take 20% tax deduction if I don’t “roll it over to another plan or IRA.” Is this true? And what are my options to avoid this huge tax hit? And of course, what exemption if any should I take on the monthly pmt of $1095. I live in California so there is state tax along with federal. I need all the money I can get each month to live on. I plan to get a job to supplement this as who can live on $1095 a month? Is there a way to calculate the exemption so I’ll know what how much I’ll have left out of the $1095? Thanks for any help in advance!
Hi quick question because we are totally lost. My fiancé and I are getting married in October and I have two kids from a previous and I claim them. My fiancé makes about $46,000 and I make $33,000 however we are both also in a chapter 13 separately. I want to be able to get a nice refund but we also live check to check and can’t have to many taxes taken out on our paychecks. What would you suggest our withholding should change to in our paychecks?
I have been with my fiancé for many years now. we have two kids and he claims head of household as he is the only one who works. However I just recently got a job as a substitute teacher. What should I put on my W4.
I’m a mother and student but my question is …..is it a good idea for a college student to not file a federal tax return assuming that the income taxes withheld by employees “probably” will cover their tax liability? What are the negatives if the employer withheld too much in taxes? Or not enough taxes? Will any tax credits be lost?
If i am 24 years old and I live with my parents what do I put on line A of a W-4?
Hi! If I work 1 full-time job at $10/hr and 1 part-time job–17 hours total in a month at $10/hr, should I claim a 1 for each job? At the full-time job, I claimed 1. Any advice would be helpful. Thank you.
Hi Jan,
I recently got married and my spouse does not currently work. For a long time I had 2 and Single listed on my W4 – I just followed the instructions on the form and changed it to 3 and Married. The IRS Withholding Calculator is giving me awfully big numbers so I’m not sure if I used it correctly – is 3 an okay number or should I do more/less to avoid owing at tax time?
My goal is to get the most out of my paychecks – refund isn’t really as important as not owing.
Hi Sandy,
You’re probably right, but I’m going to send you to the IRS withholding calculator to get you the best scenario.
Bottom line, you need more money in your take home pay–not a big tax deduction later, right? Follow the instructions on the guideline and it will help you reset your withholding for a zero refund.
Have your most recent paystubs handy and you last tax return. (If you don’t itemize, you probably don’t even need your tax return.)
Hi Teresa,
I would have your daughter claim zero exemptions. She probably will have to file a tax return in April.
Now if she’s still under 24 on 12/31 then you’ll still be able to claim her as a dependent. That’s why I’m saying zero.
If she’s over 24, you might not be able to claim her if her income is over the exemption threshold which is $3600 for 2013. In that case, I’d have her claim one exemption, she’ll have more take home pay that way.
Hi there,
I am married and we file jointly. I do make more money than my spouse. We have one child together. Up until now, I have only been claiming “1” on my taxes. Wouldn’t it be better, if I need more money in my paycheck, to change it to “2” ? In that case, would it also be better for my husband to claim zero because he makes less money than me? Thanks so much for your time!
Hi Shar,
My best guess is that since you’re a single mother with 3 kids and you’re on your own that you won’t have any tax liability at all. I’m thinking you can claim at least 5 exemptions and probably even 8 (one for each of your kids that’s under age 17.)
If you’re making $15 an hour, at $30 hours a week and you claim 6 exemptions, you’ll have zero federal tax taken out.
If you’re making over $15, (and your kids are under age 17) I’d go up to the 8 exemptions but I wouldn’t go over that.
If you have 8 exemptions and they’re still taking out federal income tax, then you’re probably making too much to get EIC and may have taxes so you’ll want some withholding.
(I never can tell want “don’t make very much” means to some people. I once had a fellow call me saying he “didn’t make too much” and his income was $200,000 a year. I’m assuming that’s not your income bracket but just in case, I want to make sure you don’t claim more than 8 exemptions to cover your behind.)
Hi I’m a single mother of 3. I’m just trying to figure out what number I should enter on my w-4. I work about 30hrs a week so I don’t make very much money plus I go to school and live on my own.if that extra info is needed.
Our daughter, who is 23 and still in college, just got a part time job. We still pay for all her living expenses plus school 100% and claim her on our taxes. What does she put on her W4, and does she file a tax return when that time comes? Thanks.
Hi Tasha,
If you don’t want to pay a ton to the IRS later, don’t claim too many exemptions up front. If you have been claiming too many exemptions, use the IRS withholding calculator to help you adjust now so you don’t get stuck later.
http://www.irs.gov/Individuals/IRS-Withholding-Calculator
Hi Mark,
Generally I would say claim 3 exemptions. One for you, one for your wife and one for your child.
Hi Jayne,
I’m going to give you similar advice as Donnah–check out the withholding calculator.
But also, what all is coming out of your check? At $40,000 a year with 5 exemptions, I’m thinking that you would have about $203 taken out for federal and state taxes. Depending upon what state you live in, that could be another hundred maybe. But what other things are they taking out? If it’s health insurance–that’s a good thing. It’s much cheaper through your employer than paying that on your own.
But do check out the withholding calculator. It will tell you if you can increase your exemptions (which would give you more take home pay.)
Hi Donnah,
So I’m guessing that you make about $20 an hour? If you made $20 an hour and worked an 80 hour week, your gross pay (that’s how much you get before they take out taxes) would be $1600 every two weeks. And your employer would take out $122.40 for your FICA (that’s Social Security and Medicare) and another $97 for your IRS withholding. That comes to $219.
Now, if you don’t make close to $20 an hour, then there may be something wrong. But you’ll want to check about things like health insurance or other things your company might withhold for–like daycare.
And don’t forget your state income tax–they have to withhold for that too.
So if this is all making sense, then you’re okay, but if it’s not, go to your employer and have her explain what all the deductions are. I know some people feel embarrassed having to ask questions–but this is your money and you have a right to know. It’s not like you’re accusing her of cheating you, you just want to understand what is going on with your money.
And, not that your employer would cheat you, but I’ve seen cases where the withholding was wrong. Wouldn’t you rather ask and get it straightened out if that was the case?
If you’re feeling like doing some work on this, try using the IRS withholding calculator. Here’s a link: http://www.irs.gov/Individuals/IRS-Withholding-Calculator
It’s a great tool for figuring out if you can change your exemptions or not. You’ll need your last pay stub and your last tax return to get an accurate reading, but it’s pretty good.
Hi Santos,
You’ve got a really good question, but I’m sorry I don’t have an easy answer for you. You see, it depends. When you get to tax time next year, it may make sense for you to claim your child, or maybe your boyfriend should. Or maybe your in-laws should. You’ve got so many options.
Here’s what I think you should do. For now, you should claim one exemption on your W4–that way you’re covered no matter what you do.
You said “boyfriend” instead of husband so I’m assuming that you’re not officially married. If you were married and had to file a joint return, I’d have you claim zero exemptions.
When tax time rolls around next year, you, your boyfriend, and his parents (if they make more money than you and your boyfriend) will all sit down together and do your taxes. Everybody will run the numbers with and without your child. Assuming you’re all working together for the good of the child, right?
Then, whoever gets the biggest refund or deduction for claiming your child should take the exemption. But–whoever gets the exemption only takes as much refund as he or she would get if they didn’t claim your child. The extra money goes into a special account to pay for college, or medical expenses, or whatever your child needs.
Bottom line, you and your boyfriend should argue over who claims your child since you should be working together for the good of baby. Right?
Hi,
I have a 2 year old i live with my in-laws but me and my boyfriend have always argued of who will claim the baby i am working a job right now i have 6 months working here and they are asking me to fill out my w-2 form to update it i don’t know if i should claim my son if my boyfriend is already calming him on his. Can you please help i am getting paid less than him. What would you suggest?
hello. i work a fulltime job, im the head of household and i have 3 kids.. my employer help me and she said to put 5 for withholding.. i usually get $200-$250 taken out of every check for taxes. what disappoints me is that if i work more than 75hrs in those 2 weeks, im getting a check like im working less 75hrs in 2weeks.. why is that? should i claim more to get more money or just leave it how i have it on my w4?
Hello, I am head of house hold and a single mom of 3 making close to $40,000 a year. How many exemptions should I be claiming on my w-4? I am getting close to $300-$400 taken of my checks every 2 weeks leaving me with anough to pay bills and thats it. How can I fix this?
if I make for example 130k annually, my wife do not work and we have one child, what should I have on the W4 ?
Hi Afreeca,
Congratulations on your husband being back from active duty.
Here’s the quick and dirty option: have whichever one of you makes more money claim married with 5 exemptions and the one who makes less claim single 0.
Or, for the more accurate reading, go to the IRS withholding calculator: http://apps.irs.gov/app/withholdingcalculator/
That will give you a really accurate reading and it goes for a zero refund keeping as much in your paycheck as possible.
Hi Samantha (post 51, sorry I got out of order here)
You may be just fine. I’m guessing 1 for you, 2 for the kids, another 1 for claiming head of household, 2 more for the kids getting the child tax credit–that’s 6 right there.
Basically, if your income is pretty low, you’re fine claiming that many exemptions–if your income is high (or you have a second job or other income) then you should probably change it.
The best way to tell for sure is to use the IRS withholding calculator: http://apps.irs.gov/app/withholdingcalculator/
If you use the standard deduction (you don’t itemize things like mortgage interest) then you just need your latest pay stub. If you itemize, then you’ll want a copy of your latest tax return also.
If you’re not withholding enough, the calculator will tell you exactly what to change your withholding to.
Hi Katherine,
For your situation, I’d go ahead and claim 10 exemptions just to get as much money as possible.
For your situation, it’s only a temporary job and you’re not going to be working in another week or so–you won’t need the high withholding so go ahead and take as much money as you can.
If you were going to be working at a job consistently for the entire year, then it would be wise to keep the withholding up, but it sounds like you need your cash now and from what you’re telling me, I don’t think it would hurt you at all.
Question, I have a temporary job and it will end in two -three weeks with one more paycheck. The Hours I put in and then what is taken away in taxes is incredibly high. Can I change my allowance to from 1 to 2. Since the W-4 says add one for yourself and another if your single and only have one job. Will this affect me in my filing return for next year. It just one paycheck and I wont get another job in awhile.
I got confused on my w-4 and after everything was said and done I ended up with 8 deductions total. Im single, 2kids, one job and I file head of household. Will I end up paying in??
Hi Jen,
On your W4, I would claim 1 exemption–just you. That way, if you don’t claim your child on your tax return, you’ll be fine taxwise next year.
BUT– don’t automatically assume that your boyfriend should claim your son next year. (By the way, congratulations on your new baby! I bet he’s adorable.)
But, I’m guessing that you and your boyfriend are a family and working together to make the best life possible for your child, right? So maybe he should claim the child, but maybe not.
What you want to do next year is to sit down together and have both of you prepare your tax returns. Each of you do it two ways, one with claiming your son, one without. Then figure out what scenario gives you the most money as a family.
If you read the rules, it says that if you and he disagreed over who should claim the child–then the exemption goes to the person with the higher income. But–a couple working together for the good of the family–you’re not disagreeing so you don’t have to worry about tie-breaker rules. You’re united.
Sometimes, it’s better for the parent with the lower income to claim the child because of the earned income tax credit.
So, run the numbers both ways. And–if you two get more money by having you claim your son–by all means do it that way. Then take the extra money that you as a family earn and put it in the bank to save for your son to go to college.
Hello. I just got a new job starting this week. As I was filling out my w4 I stopped and realized I wasnt sure if I should claim my 2 month old son as a dependent or not. My boyfriend makes a lot more money than me. What happens if I claim him as opposed to what happens if I dont? I was told my boyfriend would be claiming our child around tax time since he makes more. Does that mean I should say I have no dependents? Thanks for your help.