How to Calculate Federal Allowance
- 1). Add one allowance for yourself.
- 2). Add another allowance if you are single with one job, or if you are married with only one job and your spouse does not work, or your wages from a second job or your spouse's wages, or the total of both, are less than $1,500.
- 3). Add another allowance for your spouse if your spouse does not work and you only have one job.
- 4). Add an allowance from each dependent you plan to claim on your tax return.
- 5). Add another allowance if you plan to file as head of household on your tax return.
- 6). Add another allowance if you plan to claim at least $1,900 in child or dependent care expenses as a credit.
- 7). Add two allowances if your income is less than $61,000 if single or $90,000 if married, for each eligible child. Subtract one if you have three or more children. If your income is between $61,000 and $84,000, or $90,000 and $119,000 if married, add one allowance for each eligible child and add one additional allowance if you have six or more eligible children.
- 8). Sum the total allowance from steps 1 through 7. This is the base withholding allowance you place on your W-4. Although all allowances are just an estimate, if you choose to, you can refine this estimate using the Deductions and Adjustments Worksheet and the Two-Earners/Multiple Jobs Worksheet in the IRS W-4 document.
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