In general, claim one allowance or exemption for every dependent on a W-4 according to the IRS. The Personal Allowances Worksheet that appears on the W-4 Form helps a person determine how many allowances to claim. In general, claiming more exemptions means less taxes are withheld on a paycheck.
The information entered in lines A through H determine how many exemptions a person can claim in a current tax year. The exemptions for each line are:
- Line A - personal
- Line B - employment
- Line C - spouse
- Line D - number of dependents
- Line E - head of household
- Line F - child or dependent care expenses
- Line G - child tax credit status
- Line H - sum of all allowances
The total number of allowances from the worksheet is entered in Line 5 of the W-4 form given to an employer. This information is used to calculate tax withholding on a paycheck.