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 Kim,
Doing what your doing makes sense to me. You withhold extra to compensate for your husband’s self employment tax. Since he owed last year, your child’s exemption and the child tax credit will help offset that a bit. If your husband’s income has gotten to the point that your extra withholding just isn’t covering his taxes, then maybe it’s time for him to start making estimated tax payments.
Remember, if you own your own business and have to make estimated tax payments, that means you’re winning!
Hi Maricela,
With you and your husband, only one of you should claim your child on the W4. The one who makes the most should claim your child, the one who makes less should claim zero exemptions. You’re a good candidate for the IRS withholding calculator to get the most accurate withholding.
Hi Jackie,
Congratulations on your upcoming wedding! I’m guessing that no one else claims your boys on their tax return, right? If that’s the case, then your husband will be able to claim them as his dependents since he is their step father. And, since you are their mother and you will be filing jointly it’s all good.
So–I’m thinking that your husband will be able to change his exemptions to married with at least 4 exemptions. If the boys are under age 17, then 6. And, since your finance’ has been claiming zero exemptions all year, I’m thinking he might even go up to 10 for now. Get a little extra take home pay to help with the wedding expenses.
At $400 a week, he’s going to qualify for EIC and that should really help with the taxes. It might even give you two and nice little nest egg to help you get off on the right track. I’d rather see him making more money, but at least a nice tax refund should help you two a little bit.
Good luck to you both and my you be blessed with much happiness.
Hi Dani,
My big question to you is–do you have custody of the kids? I realize they’re in college, but when they come home, do they live with you? It sounds like you and your ex are pretty much 50/50. So I’m guessing that when he claims the kids, he’s also claiming head of household as well.
Since there is more than one child, can you each claim one of them for head of household and just switch the exemptions? That would benefit both of you, it your ex is agreeable on that.
Here’s a post that might help you: http://robergtaxsolutions.com/2015/01/tax-strategy-for-exes-that-get-along/
Now about the college costs. You have to claim the exemption to claim any tax credit for your daughter’s tuition. Once again, you should work this out with your ex. If he’s not paying tuition, he won’t get the credit. But, it’s worth up to $2500. Maybe you too play nice on that one.
If your ex is claiming both of the younger kids as exemptions and claiming head of household–I’m worried that you’re actually not withholding enough, because you’ll get hit with claiming single and no exemptions on your tax return. But if you could claim your daughter, with being head of household, and the college tax credits, we’re looking more having your withholding as being single with 4 exemptions- which would be much easier on you.
If you’re at all friendly with your ex, I recommend you two work together on your tax strategy for the kids. Maybe you can come up with something that will benefit everyone. And that would be the best.
Hi Phil,
My quick and dirty calculation is – for every thousand dollars of refund that you got last year, claim one more exemption. The better answer is to use the IRS withholding calculator if you really want to fine tune things.
Now remember, you’re halfway through the year already, so changing your withholding to what I said would still leave you with a decent refund for 2015, but should reduce you down close to zero for 2016. The IRS calculator would reduce you down to zero for 2015 (giving you more in your take home pay now) but then you’d want to re-adjust in January so you wouldn’t get hit with a balance due for 2016. (Because you’d be cutting your withholding way down to compensate for all the extra withholding you’ve already done this year.)
Hi Rachel,
The income tax system is supposed to be a “pay as you go” kind of system. (Okay, there’s a million examples of when that’s not the case, but that’s what it’s supposed to be.)
So in your case, you’re either paying your income tax now–or you’re going to wind up paying it later at tax time. It’s much easier to pay a little each paycheck then to get hit with a chunk next April.
Since you’ve had tax withheld in the past, claiming “exempt” is not a good idea for you. If you want to increase your take home pay, instead, claim more exemptions, like 5. That will probably reduce your federal withholding down to nothing.
That said, it sounds to me like you should be claiming 1 exemption, so that’s going to leave you with a balance due come April. So, you’re going to want to change it back as soon as things straighten out for you.
So maybe you claim 5 exemptions for awhile, things get better and then you switch to claiming zero exemptions to catch up a bit. This isn’t a perfect solution, it’s more of a “you gotta do what you gotta do to survive” kind of situation.
Good luck. I hope things get better for you soon.
Hi Jan. I was wondering when it IS ok to file exempt even if it’s for a short time. I have Single, 1 on my taxes currently and they have been collecting from me all year. However, I am in hard financial times where I need that extra little chunk for bills and have heard it’s ok to claim exempt for a certain limited number of weeks (depending on the employer). Is this true? I’ve been googling on the Internet and can’t seem to find any answers on it. I’m currently living with my mom, helping her pay rent and supporting my unemployed boyfriend.
Hi Spenser,
Well I feel comfortable with you claiming 3. Depending upon your income, you could probably do 4 pretty easily as the child tax credit would compensate for the other exemptions – I’m guessing that your child is under age 17.
Your issue will have more to do with what’s been withheld before, making sure that enough tax was taken out in the past. But assuming that it was, then you should be okay claiming 4 exemptions now.
If you want to fine tune it – for example, maybe you’ve got some itemized deductions going for you also, then try the IRS withholding calculator. But for just a regular married, one child under age 17, non-working spouse, employee, you should pretty much balance out okay on your federal with 4 exemptions. But only 3 for your state as your state won’t have an extra child tax credit.
Hi Jen,
if you claim 10 exemptions, then you are unlikely to have any federal tax taken out. As a single mom with one dependent, if your income is low enough then you’ll qualify for EIC and probably will have no tax liability at all. That’s why they’re telling you to do that.
Now, if you’re annual income is $40,000 or more claiming 10 exemptions would be a big mistake. If your annual income is close to $17,000–I’d say not a problem, go for it.
Hi Meredith,
if you’re struggling, I’d up the exemptions to 2 to take home more money. Once again, I recommend the withholding calculator. You can probably increase your exemptions even more to maximize your take home pay and the IRS withholding calculator will tell you exactly how far you can go.
Hi Nate,
It sounds like your sort of switching places. Now, my best advice is to use the IRS withholding calculator to get the most accurate results. But my shoot from the hip answer would be for you to claim married with 2 exemptions and your wife to claim single zero for her future part time job.
And congratulations on finishing grad school!
Hey I have been claiming 0 on my w4 but today I changed it to 1 so I can have extra in my paycheck to take care of my son. I am a single mom and I’m struggling. Should I change it back to 0 or leave it? How badly will it affect my refund next year?
Thanks
Hi Jan,
This is a fantastic service you offer! Thanks so much! My wife and I just moved to a new city in the same state (IL) where I’ll be a teacher. She’s not yet found a job, but anticipates finding something (part time) within the next 8 weeks. Up until this last month, she was working FT and made the most between the two of us, while I was working PT through grad school. I’m wondering how I should file my w-4 given that we’re over halfway through the year? And when she finds a job, do we file exactly the same or will she file differently? Our preference is to avoid owing come next tax season…
Thanks in advance!
Hello, I am single mom (1 dependent) . I just started a new job and they are asking me to put 10 on exempt even though I always put less than what I needed previously in other jobs to withhold more tax. Can you please explain pros and con of this situation? I am afraid I will end up paying a lot of taxes at the end of year.
My wife and I have a child and I am starting a new job. Once I start my job, my wife will leave her job and I will be the only source of income for my family. I am confused as to how many allowances I should claim seeing as how the recommended is 3; even though it seems I could do 4. Little advice would be welcome.
Hi,
My husband is self employed and I work in corporate America and make more money. We recently had our first child and need to know what to claim. I usually claim 0 but do I have to claim more now that we have a child? Last year, my husband owed money on his taxes. What is the best way to offset what he owes?
Both my husband and I work full time. We have 1 child. Can we both claim our child on w4 or should only one of us?
Hey Jan,
I work full time, my wife works part time, we have two kids. I currently claim one exemption. We receive large refunds each year. What is the proper number of exemptions I should be claiming to not receive such a large refund but yet ensure that we don’t owe either. Thanks in advance.
Phil
Hi Jan,
I am single with 3 kids and own my own home. My 22 yo son rents a home year round (he pays for it) and is a full time student. My daughter is 19 and a full time student. I pay some of her tuition and housing. My youngest lives half time with me and is still in high school. I claimed the 2 younger kids last year and my ex will claim them for 2015. Questions are: 1) should I file as “single” or “head of household” 2) how many exemptions should I have on my W-4. Right now I am “single” with 2 exemptions but the federal tax being withheld seems excessive. 3) Am I able to write off the money I am paying towards my daughter’s tuition/housing somehow even though I’m not claiming her in 2015?
Thank you!
Dani
My fiancee works for 10$ per hour 40 hrs a week and I am don’t work due to a back injury I have not and will not work at all in 2015 but we are getting married in October and I have 2 boys from a previous relationship. Will my fiancee be able to claim me and the 2 boys on his return this year?? Is there a credit for getting married?? How much should we guesstimate he will get back next year?? He does have an extra 25 held each week and he claims 0 all year.
Hi Laura,
If you claim two exemptions for both jobs, then you won’t have withheld enough. It’s because each job treats your withholding like you only had that one job, but when you file your taxes, your income will be doubled. So, most likely you’ll want to claim zero exemptions on each job.
You can always go to the IRS withholding calculator to double check.
Oh Chelsea, update:
Since two of the children are yours from a previous marriage, only you can claim those kids for EIC. I’m guessing that your income will be low and that you will qualify for EIC (at least this year since you’re only working half a year.) So, I’m 90% positive that you’ll wind up claiming those two. But, I don’t know all the facts, so still claim 1 exemption, just in case.
Ah Chelsea,
You may just have the best of both worlds. You are not married to the father of your children. You income will be smaller. You may be able to claim your children for a higher tax refund than your boyfriend can.
What you’re going to want to do at tax time is prepare your taxes a couple of different ways, you claim one, he claim three, you each claim two, etc.
Since you are clearly a family unit, you’ll go for the tax situation that gives your family the largest combined refund.
I’m thinking that he will claim “head of household” as he earns more. But you can freely switch around who claims what dependents. (Within reason.)
I’m not seeing this a hurting your family, but as “opening up possibilities.”
Good luck with your new job. Oh–I’d claim 1 exemption. That way, you’ve covered yourself in case you wind up claiming no children.
Hi Arie,
If you claim exempt, then there will be no tax withheld from your paycheck. So, if you’re really poor, that might be okay, but if you’re more middle class, you could have a serious problem at tax time. I recommend using the IRS withholding calculator and see where you stand. It sounds to me like your husband has had not withholding all year. If you normally qualify for a bunch of EIC, that might be okay, but if you have any kind of tax liability, you might wind up with a balance due and that could hurt.
Hi Jan,
I’m single and just switched from 1 full time job to 2 jobs that equal a little more that what I was making before. The income from the two jobs keeps me in the same tax bracket. I had claimed 2 previously and have received decent refunds back the last several year (I think due to student loan interest). Should I continue to have the same number of exemptions even though I have 2 jobs? And do I claim the same number of exemptions at both jobs? I’d prefer to not be having too much withheld.
Thanks for you help!
– Laura
Oh. I also don’t know if it makes a difference that two of our four children are mine with my ex-husband but they live with us full time. Can he still claim my kids if he doesn’t claim me? Thank you!
So, I’ve been a stay-at-home mom for 5 years. My boyfriend, not husband, has claimed me and our 3 children each year and always received a substantial refund, as we like it. However, I’m about to start a new job making much less than him (but enough to help) and am curious how to complete my w4. I understand if we were married I would claim 0 and have him claim all of us but since we are not married, is it any different? We also had our 4th son and bought a home this year but he is still worried my small income will affect our return. Please advise. Thank you!
Hello so my situation is, i resigned from my job of almost 5 years last year 2014. My husband then filed exempt and claimed my 3 children(at the time) and myself and under head of household and married (whereas before we would file married and seperate). I went back to work in april of this year and when i filled out all my w4 i put exempt too. My husband still has all of us under his dependants and i had another child this year. What should i do? Should i keep my w4 as is and claim my newborn or have my husband take all of us and keep both our checks exempt?
Hi Roger,
Yes, you and your bride will be in a higher tax bracket. I suggest you prepare a dummy tax return using your old W2s to see how it looks.
You can go to the IRS withholding calculator to get a really good picture of how you should change your withholding. My gut reaction is for her to claim married with 2 exemptions and you claim married but withhold at the higher single rate with zero exemptions – but since we’re halfway through the tax year, that might not be enough. That’s why I think you need to check out the IRS withholding calculator to see how things look. You could quite possibly be fine since I’m guessing you’re both still withholding at the single rate.
Hi Jonathan,
Yes, your parents will still be able to claim you as a dependent on their tax return. So–if you’re working, you should claim Single with zero exemptions.
Hi Joanna V,
I’m thinking that you’ll need to withhold at the higher single rate with zero exemptions. But it’s already July so you’ve already missed out on half a year’s withholding. I recommend you go to the IRS withholding calculator and see where you stand. You might need to withhold extra if you don’t want to have a balance due.
Hi Kati,
I don’t think that you should claim “Exempt”, I think you should claim one exemption. I realize that you didn’t have to file last year, but I’m hoping that you’re going to make enough to need to pay tax. (Sounds weird but I want you to make money, not be poor.)
Claim one. Don’t claim “exempt”. I think that’s going to be the best thing for you.
Hi I had a question about weather or not I could claim exemption on my W-4 for the 2015 tax year.
In 2014 I was unemployed with no income, received no government assistance (welfare, unemployment, etc.,) and didn’t file nor receive any tax returns. Also I’m almost positive no one claimed me as a dependent.
Now when I go to file for this coming year in 2016 should I change my current forms to claim the exemption since I didn’t file or receive any refunds?
Thanks for the help everyone I tried looking online and calling the IRS but either can’t get through or can’t find the answer I’m looking for. Thanks!
Hello….I am married with 2 kids ages 7 and 10. Both my husband I and work, but I have the higher paying job. This year we did not receive a tax refund and owed $4K in taxes. What should I be claiming on my W4 to insure the max amount is taken out of my paycheck so that we do not owe money next tax period? Married, zero allowances? Married, zero allowances but withhold at a higher, single rate?
I’m still 17 but turn 18 this year on sept.5th and will be attending college and have a for sure job when school starts, will my parents still be able to claim me of their taxes when I start the job? They have payed for my classes already and soon my books too.
Hi Jan,
I stumbled upon this site and it is very helpful. I appreciate the time you take to answer the questions asked.
I am a newlywed and we are planning on filing jointly. Her salary is higher than mine, her gross income is 59000 and mine is 49000. Will we be in a different tax bracket? What should our W4 look like?
Thank you
Hi Miranda,
Why would you claim head of household? To you have a child? If not, then forget about head of household.
Since you have two jobs, I recommend using the IRS withholding calculator: http://www.irs.gov/Individuals/IRS-Withholding-Calculator
That’s the most accurate tool for determining withholding. If you want a refund, claim fewer allowances than the IRS tells you to.
My gut is to say claim single and 1 exemption for the first job and single zero exemptions for the second job. But that’s shooting from the hip and I could be way off base there.
Make the extra effort to use the withholding calculator and get a good number to work with, I’d hate to have you wind up owing the IRS right before your wedding.
Hi Ericka,
It sounds to me like between your exemptions and the EIC that you won’t have any tax debt so no having any withholding if fine for you.
It used to be that you could claim your EIC in advance with your paycheck, but that was discontinued several years ago. You’re a good example of someone who could really benefit from that program.
Hi i am a single head of household mom with 4 kids. I only claim 2 cuz their dad claims the other two. I have no taxes withholding from my checks i make $9hr and i get maybe 70hrs every 2weeks. Its a struggle takin care of my kids with what i make now ao yes i do need my refund. Will i have to owe come tax season . Cause i cant afford to have to pay ss and medi is already takin from my checks just no tax withheld. What should i do.
Hi Jan,
I am engaged but we are not getting married until next June (2016). I have one full time job and on very part time contract position. What should I claim for exemptions as I prefer to get a little back at the end of the year and, can I claim Head of household? If so, does this benefit me?
Thank you,
Miranda
Hi Krystal,
I would put down Married with zero exemptions for both. I think that’s your best bet.
Hi,
I recently started a temp job (with the possibility of it becoming a permanent job later). My husband is in the military and previously was the only one who worked, and has the higher income between the 2 of us.
However, his place a residence is still listed as TX since he’s in the military and they don’t have state taxes. We recently got stationed in CO, which does have state taxes, and I am going to have to file state as well as federal taxes because of this job. We were thinking of just filing as ‘Married: filing separate’ come tax time this year to help with this.
When I first filled out my W4 form, I didn’t really understand it but I put down 2 for the with holding exceptions for federal and state. Was that right?
Thank you for you help.
Hi Ariel,
If your parents are claiming you as a dependent, then you’ll want to claim zero exemptions – that should make your tax return show a zero balance due next year.
But, you’re making $27,000 a year–so, my first thought is why are your parents claiming you? As you still in college? Are you under age 23?
Generally I don’t see a lot of students making as much as you are (some, just not many) so I start to wonder about the whole support issue?
So, if your parents are legally still allowed to claim you–choose zero exemptions. That way you will withhold more money to cover the tax deduction of claiming your own exemption.
If your parents can’t claim you–then you should be claiming one exemption, which would increase your paycheck slightly because your tax liability will be a little smaller.
My parents claim me. Im single with 1 job. I make $27000 a year. Should i claim zero allowance or 1? Which is more beneficial and WHY? Thanks.
Hi Ali,
The best way to get a large refund is to claim zero exemptions on your W4, AND you should claim married but withholding at the higher single rate.
If my husband and I want to get a large amount of money from tax season, is putting 0 a good idea? We have already figured out that we will be living just fine without the extra help every paycheck.
Hi Betsy,
I think you’re also just right. It’s harder to tell when you’ve got a spouse who has 1099 income, but withholding at the highest amount is certainly a step in the right direction. Of course, if your husband is making a lot of money with his 1099 job, you may still need to make estimated tax payments. It’s hard to tell without more information, but you’re at least taking a step in the right direction
You might want to stash a little extra money in the bank as well to make sure you have enough for his self employment taxes just to be on the safe side.
Hi Brooke,
I think you filled out your W4 just right. Single with zero exemptions. I wouldn’t change a thing.
Previous post: Hello,
I had a child in August of 2014. I live with my boyfriend and we share an apartment with my mom. We pay rent for our own room and do not depend on my mom or his parents for anything. I will be 21 this month and am a full time college student. I work 20 hrs a week during the semester and 40 hrs a week during the summer/winter break. He works full time and does not go to school so he makes more money than me (he makes the same as my mom). He is authorized to work under DACA. How many allowances should I claim. How many should he claim? Last year I made more money than him as he didn’t work for the majority of the year and when he did he was paid in cash so I claimed our son as a dependent. We didn’t have any issues. My mom and I filed our taxes at the same place so our applications wouldn’t have any discrepancies. I will be starting a new job in June and want to fill out my w4 correctly. Thanks!
Reply to your comment:
My mother is undocumented so I am not sure it’s a good idea for her to claim me or my son? I would like to maximize my earnings. I checked my boyfriend’s pay stubs and he has 2 allowances and I have been working with 2 as well. Should I do 1 or 2 or 3 and ask him to change his to 1?
Hello,
I am not sure if my W-4 is filled out correctly. I recieve a W-2, but my husband receives a 1099 since he is self employed. We have 2 children and currently my W-2 is filled out as Married withhold at single rate and 0 exemptions. I’m trying to make sure I have more taxes withheld to help us out at the end of the year when we have to pay our taxes, but want to make sure I am doing everything correctly.
Thank you in advance for your help.
Betsy