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
Hello, I’m am so confused on how many dependents to claim. I am single with one child. Right now I have 0 dependents down on my W4 form. People was telling me to claim 0 so I can get more money back. Is that ok? When it’s time to file for taxes will I be able to claim my child? In not owe money? Please explain to me, I’m so lost.
Hi Isa,
Some companies will have you file a separate W4 for your bonus. Some companies have you pick what percentage to withhold on your bonus. So really it kind of goes with what your employer has you do. So yes, you can, and for lots of folks, probably should have different withholding on a bonus than on a regular paycheck.
Hi Jessica,
So if neither you nor your future husband work, what’s the question? You are not required to file a tax return if you have no income. I think I’m missing part of the question there.
Hi Nathan,
Your best bet is to go to the IRS withholding calculator. That will give you the most accurate answer for your situation.
Hi Maria,
I would change your withholding to married with 2 exemptions. You’ve been taking out more than you need to so you should be getting a refund at tax time. By making the change now, you’ll get a little more in your paycheck every two weeks. (Just in time for Christmas!)
Hi Apil,
First – you’re not going to get into trouble. You’ve done nothing wrong. The worst thing that could happen is that you’ll owe money at tax time. That’s the worst.
And you might not owe anything! A single mother of one going to work for the first time, I bet you didn’t make a whole lot of money in the first place. So if you do owe, it might not be that much.
If you owe at all! It’s even possible that you could qualify for EIC and maybe even get a refund-even though you didn’t pay into the system!
It’s hard to tell because I have no numbers, but I wouldn’t lose any sleep over it. You can see if you will qualify for an Earned Income Tax Credit by going to the IRS website and answering some questions. Here’s the link: https://www.irs.gov/Credits-&-Deductions/Individuals/Earned-Income-Tax-Credit/Use-the-EITC-Assistant
Hi Alice,
Since the father is claiming the children as dependents, you will have one exemption, that’s yourself. That said, I want you to read this: http://robergtaxsolutions.com/2011/11/split-exemption-claiming-one-child-on-two-tax-returns-%E2%80%94-the-legal-way/comment-page-7/#comment-43798
I believe that you could still qualify for head of household and EIC. in which case you could claim more exemptions and have a bigger take home paycheck.
You should probably read this too: http://robergtaxsolutions.com/2015/01/tax-strategy-for-exes-that-get-along/
If these situations apply to you, you’ll pay a lot less in taxes (and probably get money back to use towards raising your kids.)
Hi Betty,
Ouch! So you know you’re going to owe. First, change that W4 today and take it to the personnel department and make sure the changes are made. When your husband gets his next check, go over it to be sure they did the adjustment.
Then I would just go ahead and make an estimated tax payment since you know you’re going to owe anyway. You can do that online: https://www.irs.gov/Payments
You really have no recourse against your husband’s company. You can make sure they feel real bad about it, but they don’t have to pay your tax. But, as my husband always says, if you don’t ask, you don’t get. It was their mistake. Maybe they’ll volunteer to do something to help you if you ask. But they don’t have to. The burden is on you to review your pay stub and make sure that you’ve got the proper withholding. (Sorry, but that’s the way it is.)
Hi Laura,
You won’t get in trouble for claiming your kids as exemptions on your W4 and changing your mind and not claiming them on your tax return.
Here’s the bigger question though, should the dad claim the kids or not? Since you two are living together, and working as a family, what you want to do is figure your taxes all the possible ways so that the two of you together have the biggest refund (or lowest liability) combined.
Here’s what I mean – you set up your tax return as you filing head of household with 2 kids. Then single 1 kid, and single no kids. Figure your tax for each situation.
Then, do his taxes as: head of household 2 kids, head of household 1 kid, single 0 kids.
Notice, with the one child scenario, I gave him head of household and you single – that’s because he made more money than you did and you really should only have one head of household per household.
Add your refunds (or tax liabilities) together. What’s the best deal for you as a family? Don’t forget to include the state–that could make a difference.
And this is legal for you because you are both the parents of those children, and you are working together as a family unit. The extra money that you save doing it this way can be put into a savings account for the kids college or something.
Oh, and congratulations on your new baby!
Hi Heli,
If your children still live at home with you, then you can still claim the three exemptions. Also, since I’m thinking you should qualify to claim head of household on your tax return, I would also claim one additional exemption for that, so your W4 would show single with 4 exemptions.
Can I use two different w4 within one week’s pay? I want to use one w4 for the bonus and the other one for my regular paycheck?
Thank for your kind attention to my question.
I was wondering if me nor him work and we got 4 kids and were getting married in December can we still file taxes on just that not working
My wife and I both work. I make slightly more than she does. We have 2 children. We would like to fill out our W-4’s in such a way as to maximize our net income, and ultimately come as close to breaking even when we file our taxes. In other words, more money in our pocket on a monthly basis as opposed to a large refund at the end of the year. Can/should we both claim both of our children on our W-4’s?
HI, I started working in August 2015, and I was married when I started working. On my W-4 I wrongly mentioned single with 1 exemption. Now I just looked at my account and I realized it is wrong. My spouse is a student and he wont file taxes this year, Should I change it to married with 2 exemptions or married with only one. Will it effect the taxes they are taking out of my pay every other week? Thank you!
Hi I filed exempt on my w4, this was my very first time filling out this form and my first job. I have never filed for tax returns before and Im a bit confused and worried now cause I see there are consequences for filing exempt. I simply chose to because the option was there and of course I wanted to take home as much money as I can. Can you please explain in simple terms what I should have entered in the form? Im a single mother of 1 and Im not a dependent.
Hi,
I’m am single, returning to work for first time after being a stay-at-home Mom, have 3 kids who live with me but are claimed as dependent a by their Dad who pays support. Do not want to end up owing taxes so not sure how many exemptions to claim. Job will only be about $20-24K for the year. Advice?
Thanks!
When my husband started working with his current company he listed himself as “married but withhold at higher single rate”. Somehow the company got it all wrong and has been withholding at 4 allowances. This is a bigger number then he actually has for allowances. We discovered this error last year at tax season, and he contacted his company to get it changed. It has not been changed despite his repeated requests, and so we are again looking at no refund and possibly owing for the second year in a row. Is there anything that we can do about this situation?
Respond to last comment: My husband died a few years ago so when I file my return now I file as single. Would I still claim 3 exemptions? I’m always confused about state and federal deductions. I live in Maryland. would I claim 3 for state and 3 for federal? Thank you!
Hi! Okay so I started a job at the end of February and claimed my two kids on the w4 form. single and head of household. I quit at the end of August to have my second child and stay home with both now. My question is me and my boyfriend/father of my children were thinking about him claiming the children since he is now the main provider. he has had a full time job the whole year and didn’t claim any kids on the W4 form when he originally filled it out. Will I get in trouble for not claiming them on my tax return? Will I end up owing a lot? I’m not sure how it all works out. thanks in advance!
Hi NR,
If you were my client, I’d make you come into the office and sit down and go over the numbers together. You’ve got some moving parts there. Two incomes, switching from payroll to retirement – but remember, that retirement income is taxable!
So is your income lower or will it stay the same? Question 1.
Queston 2 – will that $27,000 be taxed as one lump sum or not? I’m thinking it’s one lump sum which is why they’re asking. And that’s severance pay, not retirement, right?
So, for the severance pay, I’d look at your old tax return to see what your tax rate is. Here’s the tax rate bracket if you don’t have that listed in your paperwork: http://taxfoundation.org/article/2014-tax-brackets
Tax brackets are based on your taxable income, after you take out the deductions and exemptions.
For your pay out check, since this will be additional income, have them withhold the tax bracket percentage for you – 15%, or 25%, or 28%, etc. Plus, have them withhold your state income tax percentage as well. (Here in Missouri you’d say 6% but I don’t know where you’re writing from.)
That should take care of the lump sum. Then you’ll want to claim Married with 2 exemptions on the higher retirment pay, and married with 0 exemptions on the lower pay. Probably.
But, I still think sitting down with a professional is a really good idea for anyone about to retire.
Hi Christol,
I would still claim Single with 0 exemptions on the second job just to be safe. My biggest concern is claiming your mother as a dependent. Does she make less than $4,000 in taxable income in a year? Do you provide more that 1/2 of her support? You need to be able to answer both questions with a yes.
Here’s where lots of people have trouble: Let’s say your mom get’s $12,000 a year from Social Security, you would need to pay at least $12,000 a year towards her support to be able to claim her as a dependent (because SS would be paying half with it’s $12,000.) If you paid less, then she’s not your dependent.
If she’s genuinely your dependent, definitely claim her. I’m just pointing out where people can get into trouble to be cautious.
Hi Heli,
I’m sorry for your loss.
If your husband died this year (2015), you will still file your return as Married Filing jointly. After that first year, you may file as “Qualifying Widower” because you have a child. That’s the same tax bracket as Married Filing Jointly.
So–for your W4, you will claim Married with 3 exemptions. (One for you, one for your daughter, and one for the child tax credit.)
At $35,000 of income, you can still qualify for a little bit of EIC, but anything over the $35K reduces it, and it’s less than $1000 so I wouldn’t take an exemption for it. (That can be you little slush fund. A happy present if you get any, but no loss if you don,t.)
Hi Michelle,
A married person with 4 children and a spouse that does not work – start with married and 6 exemptions. If the children are under age 17, you could probably go up an exemption for each of those unless your income is over $110,000 – for married couples, the CTC starts to phase out after that.
Hi Joseph,
I think you need to read this post also: http://robergtaxsolutions.com/2011/11/split-exemption-claiming-one-child-on-two-tax-returns-%E2%80%94-the-legal-way/
I’m guessing that the mom is the custodial parent and you are not, right? So, unless you have another child that lives with you, you cannot claim head of household – so that’s your tax problem.
You see, on years that you can’t claim your daughter, you should have Single with 1 exemption for your withholding. In years that you can claim her, you should be able to claim single with 2 exemptions. (Three exemptions if she is under the age of 17 and you can claim the child tax credit. The CTC begins to phase out if your income is over $75,000.)
But you cannot claim head of household, and you cannot claim EIC – unless there is another child in the story. Your daughter will not qualify you for those tax advantages. Sorry.
Hi – I took a buyout at work and will receive one check in 2016 for about $27,000. My HR department said I can fill out a separate W4 for that check so I don’t get taxed at my current rate. I am retiring/married (he is retired) as well and I will begin getting my retirement check from my company after this bonus check. I want to get taxed on it, but I don’t want all of it to go to the government right away. Then I need to fill out another W4 for my retirement check – I will not be receiving any social security benefits at this time. Any suggestions.
Hello I need you help.
So All year up until October I worked 1 job full time. Now I have two jobs starting October1st I work one full time job making 1200 bi weekly and one part time job making 400 bi weekly before taxes .. I am single, no kids and head of household and I will be starting to pay for school loans in December. I am also claiming my mother as a dependent on my tax return. What should I claim for allowances? and should I claim exemption? I used the calculator and it says I owe $0 tax liability but Im not sure if I am using it right.
Hi Jan,
I am a young widow and now single mom. I have one child and I make about 35,000 yearly. What should I claim for State and Federal? I would like to have less deductions but I also like the refund checks to pay off some debt. I need any penny I can get.
Thanks!
What if you’re married, only one spouse works and you have 4 children. What should I claim then??
Hello, I always get confused with my taxes and end up owing or my daughters mother claims her before I have the chance too.. We do have a agreement through court to claim our daughter everyother year, with that being said my question is do I change my w4 right now as 2015 taxes the mother will be claiming my daughter? I selected Head of house hold and claim myself and daughter on taxes through my job. I started January 1 2015 and well its almost the end of the year and I have a feeling I will be owing again? Please help!
Hi Tori,
I’m so sorry about your hard times. To make sure you’re really getting as much as possible, I’d claim 20 exemptions. I know that’s crazy but it should do the trick.
Now that’s an option for the short run, but make sure you change back once you get back on your feet. Otherwise, you’ll have a tax problem on top of your other issues and you don’t want that.
Remember, even if you have no federal withholding, you’ll still have social security and medicare withheld. You can’t get out of that.
Good luck!
Hi Rhonda,
You’ve got a lot of moving parts to your withholding. I strongly recommend using the IRS withholding calculator. Without knowing your other details, I would switch your withholding to zero exemptions and withhold at the higher single rate. Because you’ve got two jobs and a husband, my best guess is that you’re in a higher tax bracket than what your new job alone would be. Like I said though, the withholding calculator is your best bet.
Hi Jan,
My family and I have fallen on to hard times and I need EVERY penny from every paycheck. How do I fill out my W4 so that NO federal taxes get withheld? Thank you, Jan!
Have anew job, filled out my W-4, rec’d a few paystubs and I am not having enough withheld. So my scenario is this: I have one 17 year old daughter, married, not sure what his withholdings are, we both work. I initially entered 2 on my W- 4 and compared to what I had been having withheld at my other employer it is about 1/3 less. I just don’t want to keep it the same and have to pay in at tax time. Thanks!!
Hi Ray,
you are not exempt. You should probably claim married, but file at the higher single rate with zero exemptions. That is definitely what you’ll want to do next year. I’d start now, just to be safe.
Hi J,
I’m thinking that if you cannot claim your child on your tax return, then you should claim single with one exemption.
Hi Linda,
I have no idea. I don’t know how much you make at either job or how old your kids are, and a whole bunch of other issues. I recommend that you use the IRS withholding calculator.
Or, when you file your taxes this year, see how things turn out. If you want a bigger refund, claim fewer exemptions, if you want a smaller refund, claim more exemptions. For most people, and exemption is worth about $1000 in taxes. That’s a really rough estimate. That’s why your best bet is to use the IRS withholding calculator to get a better answer. Good luck.
Hi Reina,
My best guess is yes, claim zero.
Hi, I’m a stay at home mom who decided to start working from home. My husband and I file married with 2 dependents, so my question is can I put exempt on my W4 for now since its late in the year and change it for next year?
I guess my question is for section G I am single and I only have one child but I do not claim him in my taxes am I still eligible to put a number 2? I out a 0 and I am not sure if that was a mistake.
Hello, so what should I claim? I have 2 jobs,2 kids and single and received a refund last year.
I have a question about filling out a MI-W4 form for a new job. I have a part-time job, this will be my second job. There’s a line that asks: Enter the number of personal and dependent exemptions you are claiming. I am 25, single, and I am not in school. Should I enter 0?
Hi Jonathan,
I work with a lot of theater types and you folks get a lot of jobs and W2s and 1099s also. What happens with you folks is that you tend to work one job at a time, but the job only lasts for a short while. It’s the nature of the beast, a play only has a run for so long.
So, what I see is that there’s usually not enough withholding in those W2s. I would definitely claim single with zero exemptions. It will help make sure your withholding is up there. In your case, it’s really hard to use the withholding calculator because you’ve got so many variables.
Don’t forget to write off all of your expenses also–your home office, mileage to your shows, education, union dues, etc. Also, is your schooling for the theater or for something completely different? It seems to me that stage management classes would be a business expense. You don’t want to miss any deductible expenses.
Hi Amanda,
if you don’t live with your children, I’m guessing you can’t claim them. You should be claiming single with one exemption. Now, since it’s late in the year, you might want to switch to single with zero to get a little extra withholding in before tax time. Switch back to single and one for January.
You might want to check out the withholding calculator on the IRS website to help you figure out how much extra you should be withholding to keep from owing too much at tax time.
Hi Checmate,
It sounds like you’re going to claim single with one exemption.
Hi.
For this year I have worked at couple different jobs ( stagehand ) and I get a check from different companys, some just one gig and has never worked there again. I left a job in August 2015, had disability for about a month, going to school and now working full time. I work at my main job starting in the beginning of October and it might only last a few weeks.I am wondering what I should be claiming.
Ok I claimed 3 on my W4 but I didn’t even realize I wasn’t supposed to. I am single, I work one job, I don’t have 2 jobs, catch is I have two children but neither live with me but I should still claim 3 then right? I’m so confused. I’m going to need professional help I think. Any help or suggestions would be great!
I work full time I have 3 kids none of my kids live with me and other people claim them.What should I file?
Hi Rommel,
so much of this depends upon your tax bracket and other things. I really don’t have enough information for you. Grab your old 1040 and your most recent pay stub and go to the IRS W4 planner. That should help you figure it out.
I pay 650 a month in alimony in ct how many dependents can I claim to break even
Hi Britney,
If you’re working 2 jobs at the same time it makes sense to not claim zero exemptions (not claim yourself) at the lower paying job. But, if you only made $1500, I wouldn’t sweat that too much. Now, if your second job has you earning $1500 a month–then I’d be concerned that you haven’t withheld enough. You can always go to the IRS withholding calculator to see if you need to make an adjustment.