For years, one of the most common questions employees asked was: “How many allowances should I put on my W-4 to get the biggest paycheck?” The answer used to depend on how many dependents you had, whether you were married, and if you worked multiple jobs.
But there’s an important update: the IRS no longer uses allowances on the W-4 form. Wondering how much you’ll take home after taxes? Try our easy-to-use paycheck calculator to get an accurate estimate of your net pay.
What Happened to Withholding Allowances?
- Old system (before 2020): You could claim 0, 1, 2, or more allowances.
- 0 allowances: More tax withheld, smaller paycheck, larger refund.
- More allowances: Less tax withheld, bigger paycheck, smaller (or no) refund.
- New system (2020 and after): The IRS redesigned the W-4. Instead of allowances, you now adjust:
- Filing status
- Dependents (Step 3)
- Other income or deductions (Step 4)
- Extra withholding (Step 4c)
So, while you can’t literally “claim allowances” anymore, the idea of maximizing your paycheck still applies—you just do it differently.
How to Maximize Your Paycheck on the New W-4
1. Claim Dependents in Step 3
If you qualify, listing dependents reduces your withholding. For example:
- $2,000 credit per child under 17
- $500 credit for other dependents
This directly increases your take-home pay each pay period.
2. Leave Out Other Income in Step 4(a)
If you want the largest paycheck now, don’t add extra income like freelance earnings here. Just know you may owe more at tax time if you have side income.
3. Skip Extra Withholding in Step 4(c)
Leaving this blank means less tax is withheld, which makes your paycheck bigger. Only add extra withholding if you want a cushion against owing at tax time.
👉 To see how your withholding choices affect your take-home pay, try a free state paycheck calculator or explore city-specific options like the Chicago paycheck calculator.
Examples: Paycheck Differences
| Situation | What You Enter | Impact on Paycheck |
|---|---|---|
| No dependents, no extra withholding | Step 3 blank, Step 4(c) blank | Biggest paycheck, but possible tax bill later |
| Two kids, claim dependents | Step 3 lists $4,000 | Higher paycheck + tax credits applied |
| Extra income added | Step 4(a) = $10,000 freelance | Smaller paycheck (more withheld upfront) |
| Extra withholding | Step 4(c) = $50 per paycheck | Smaller paycheck, bigger refund at tax time |
If you work in Los Angeles, try our California paycheck calculator to see your take-home pay in 2025.
Risks of Trying to Maximize Every Paycheck
While it feels good to see a larger paycheck, claiming everything possible can backfire:
- You may owe taxes in April.
- You could face underpayment penalties if not enough is withheld.
- It’s better to strike a balance: enough withholding to cover your liability, but not so much that you give the IRS an interest-free loan.
FAQs
Are allowances still on the W-4?
No. The IRS removed allowances starting with the 2020 W-4.
How do I get a bigger paycheck now?
Claim all eligible dependents, don’t add other income in Step 4(a), and skip extra withholding in Step 4(c).
What happens if I withhold too little?
You’ll get bigger checks during the year but could owe at tax time.
Can I change my W-4 anytime?
Yes. Submit a new form to your employer whenever your situation changes (marriage, kids, new job).
Bettye is the creator of CityPaycheckCalculator.com, a resource designed to help individuals quickly and accurately estimate their take-home pay across U.S. cities. With a strong focus on clarity, accuracy, and user experience, Bettye provides reliable paycheck calculators and helpful insights to support smarter financial decisions. Her mission is to make complex payroll and tax information simple and accessible for everyone.