Determining Your Allowances With the W-4 Worksheet

• 1). Enter "1" on line A if no one else claims you as a dependent on his tax return. If you are a minor, live at home, a student or live as a dependent with another person, check to make sure you are not being claimed as a dependent by someone else.
  
  
• 2). Claim "1" for yourself by entering "1" on line B if you are single and you have one job, or if you have two jobs and make less than $1,500 at one of your jobs. If you are married and your spouse makes less than $1,500, also claim "1" on line B.
  
  
• 3). Claim "1" on line C if you are married. However, if your spouse works and you're concerned you may be withholding too little, you can choose to claim "0" here to prevent too little tax from being withheld.
  
  
• 4). Claim "1" for each of your dependents on line D, but don't count yourself or your spouse here even if your spouse is dependent on you.
  
  
• 5). Check your tax filing status and enter "1" on line E if you filed as "Head of Household" last year. If you provide more than 50 percent of the living expenses for your household and are not married, check with the IRS to see if you are eligible to file as "Head of Household" and claim this withholding allowance.
  
  
• 6). Enter "1" on line F if your childcare expenses for the year are more than $1,900 in 2011. Childcare expenses include babysitters and day-care tuition, but do not include child support or alimony payments.
  
  
• 7). Determine your withholdings for the Child Tax Credit on line G. In 2011, if you are single and make less than $61,000 -- or married and make a combined income of less than $90,000 -- enter "2" for each child up to three children and "1" for any combined additional children. If you are single and make between $61,000 and $84,000 -- or married and make between $90,000 and $119,000 in combined income -- enter "1" for each child up to six children and then enter "1" for all additional children combined.
  
  
• 8). Add the total number of withholding allowances you claimed on lines A through G and enter the grand total on line H. This is your total number of withholding allowances.
  
  

Filling Out the W-4

• 1). Enter your name, address and marital status in boxes 1, 2 and 3.
  
  
• 2). Check "Yes" in box 4 if your name on your Social Security card does not match the name on your W-4.
  
  
• 3). Enter the total number of withholding allowances from line H of the worksheet into box 5 of the W-4.
  
  
• 4). Enter any additional amount you'd like withheld from your check in box 6. The amount must be in dollars.
  
  
• 5). Enter "exempt" in box 7 if you wish to claim no withholding allowances. You have exempt status if you received a refund of all of your taxes last year and expect to do the same this year. Exempt parties have no money withheld from their checks, so if this status does not apply to you, leave the box blank. Sign and date the form to complete it.