How to Distribute Allowances Through the Year

Sep 11, 2011 2 Replies

Hello,



I'm looking for clarification concerning claiming allowances on the Form W-4Ps. Instructions on Page 3 under "Multiple pensions/more than one income" states: "To figure the number of allowances that you may claim, combine allowances and income subject to withholding from all sources on one worksheet. You may file a Form W-4P with each pension payer, but do not claim the same allowances more than once. Your withholding usually will be most accurate when all allowances are claimed on the Form W-4P for the highest source of income subject to withholding and zero allowances are claimed on the others."



My husband and I file Married Jointly. He has one monthly pension check which is larger than my two combined. If calculations show that we need to claim 4 allowances on the W-4P to come out paid up with no refund at the end of the year, does the instruction LITERALLY mean that he should claim 4 throughout the year and I should claim 0?



Thank you, Ellen


Yes. That's exactly how this reads. Keep in mind, the worksheet is only as accurate as the information you provide. You need to be on target with your itemized deductions, if any, as well as any capital gains, else you'll owe money or get a refund. The allowances do not give you

100% accuracy, only to +/- one exemption, so don't think that zero is really possible.

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