Before you start a new job, you'll have to fill out a W-4 form, which tells your employer how much income tax to take out from your paycheck. The form allows you to select the how many allowances you'll to take. The higher the number of allowances, the less tax that will be taken out of your paycheck. But keep in mind that the number of allowances selected will not affect the amount of tax you are required to pay. There is no set maximum number of allowances that can be taken; the maximum number of allowances is different for every taxpayer.
You can determine the number of allowances you are entitled to using the Form W-4 worksheet or the online IRS Withholding Calculator. You may elect to claim fewer allowances if you want, with zero being the lowest possible number of allowances. You can claim allowances for several reasons: one allowance is given for yourself; one for each dependent; one for filing as head of household; and one for being married. Other possible reasons you can claim additional allowances have to do with child care expenses, child tax credits and one-income households.
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