[Biff-1955-Tannen]

So I’m starting work in a couple weeks and I’m not sure how many allowances I should claim on my W4 to get the most out of my paychecks.

Single, no dependents, no other job or sources of income.

When I use the IRS allowance calculator it tells me to claim 6! I feel like I would end up owing a lot more than $1,000 if I claimed 6…

I was thinking more like 2… can somebody give me some input on this? Thanks

AUD - 93
BEC - 83
FAR - 83
REG - 84

Nobody calls me chicken

AUD 93 Jan 16
BEC 83 Feb 16
FAR 83 Apr 16
REG 84 May 16

99% Ninja MCQ only

[rithzz]

Yeah 6 is too much. I just pulled up the W4 form and I got 2 for you based on the info you gave me.

AUD: 78
BEC: 81
FAR: 73, 85
Reg: 84

[mtaylo24]

I claimed 3 and still owed…def 0-2

CPA (2017)

REG:  75

BEC:  76

FAR:  77

AUD: 78

 

CMA (2019)

P1: 380

P2: 360

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[Tawpeak]

Do a pro forma tax return using different withholding numbers and see where that gets you. I do one at the beginning of the year and in the middle of the year to make sure I'm on track.

Done.
AUD 95
FAR 86
BEC 82
REG 84

[jm962011]

Why don't you just use the Personal Allowances worksheet on the W4 to help you decide? It's literally “Enter 1 here if YES to some question” and then you add up all the 1's.

Based on what you said, I would say you can claim 2, maximum.

Using this worksheet, I don't even think 6 is possible. Mind posting the calculator you used? I really don't understand why people make this into such a big deal.

https://www.irs.gov/pub/irs-pdf/fw4.pdf

[Anonymous]

OK….so I looked up the withholding calculator cause I was curious. It looks like what it tries to do is adjust for people who start working mid-year. So, if I fill in my salary but list that I just started working this week, it has me claim several allowances for the year, but if I do it for the full year, then it's more reasonable. So, the calculator is trying to adjust so that your total withholding will be correct, despite the fact that you are only in a paying job for part of the year. In that case, you probably could go with the calculator's figure (providing you inputted accurate information and earned no income in the start of this year), but you'd have to make sure you remembered on January 1 of next year to change your withholdings for 2017, otherwise you'll end up owing for 2017. That will also mean that your paychecks take a big hit at the start of January. If I was in your shoes, I'd rather figure allowances based on what they would be for a full year (the worksheet on the W4 is helpful for that) and get a nice tax refund this year, rather than artificially increase them for a single year and have my monthly salary take a hit at the start of the year. Of course insurance changes will change your paycheck a bit at the start of January, but changing from 6 allowances to 0, 1, or 2 would be a major change.

[Anonymous]

Same situation as you and I originally had claimed 2 but was worried I would owe so I changed it to 1. Not sure if I actually would have owed anything if I left it at 2 all year. I would ask someone on the tax side (if your in public).

[Biff-1955-Tannen]

Thanks for the responses everybody, I figured that was too much. I think 2 is the most I'll have but I'll ask somebody from tax too.

@jm962011
https://www.irs.gov/Individuals/IRS-Withholding-Calculator

AUD - 93
BEC - 83
FAR - 83
REG - 84

Nobody calls me chicken

AUD 93 Jan 16
BEC 83 Feb 16
FAR 83 Apr 16
REG 84 May 16

99% Ninja MCQ only

[monikernc]

Biff, if you are not going to itemize deductions and do not want to pay at end of year, I suggest Single and 1. I think that will get you closer to your target for fed. single and 0 for state.

AUD - 93
BEC - 82
FAR - 76
REG - 88

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[MaLoTu]

I would say do single +1 this year and change it next year if you need to.

Almost always from my phone... please excuse my typos!

All 4 passed - 2016

CA CPA

[Biff-1955-Tannen]

Alright thanks everybody, sounds like the consensus is 1 for this year, so I'll end up putting that. Thanks again

AUD - 93
BEC - 83
FAR - 83
REG - 84

Nobody calls me chicken

AUD 93 Jan 16
BEC 83 Feb 16
FAR 83 Apr 16
REG 84 May 16

99% Ninja MCQ only

[Author]

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