What are the maximum exemptions I can claim on my W-4 form?
Dear Dansker, If you look on the back of the W-4 form it gives instructions on how many exemptions you can claim. Many people assume that they are only entitled to one exemption for themself, one for their spouse and one for each of their children. That assumption is partially incorrect. While it is true that the number of dependents and personal exemptions factors into the W-4 allowances, so do all the other items of income and deductions. For each additional $3400 in non-wage income (or deductions) you lower (or raise) the W-4 exemption by 1. For example, if you are single and receive $6800 in unemployment compensation and also have a tution deduction of $4,000 and itemized deductions of $13000 you can estimate your allowances to be 4 (1 for yourself + 5 for your deductions – 2 for your unemployment). Check the box on Form W-4 marked “Single” and write 4 in the number of allowances on line 5. Note that if you are married and both you and your spouse are working or if you have more th
