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Returning Member
posted Mar 27, 2025 11:48:45 AM

Will having 5 allowances on state taxes result in more taxes out of paychecks?

0 5 337
5 Replies
Expert Alumni
Mar 27, 2025 11:52:16 AM

Please clarify your question.

 

  • I don't understand the Question.
  • What are the 5 allowances?
  • How does it affect the state tax?
  • Are you filling out a form?

Please contact us again to provide some additional details. 

 

 

 

Level 15
Mar 27, 2025 11:52:28 AM

No---that would mean less tax withheld from your paychecks.

New Member
Mar 27, 2025 2:25:35 PM

In my experience, having a higher allowance number reduces the taxes taken out of a paycheck.  The reason for this is that when you file Fed/State taxes, your higher dependent count causes your standard deduction to increase also.  The greatest withholding for Fed & State comes when you have zero & zero allowances.

Returning Member
Mar 27, 2025 2:31:06 PM

So, you noticed that if you have 2 or 3 for federal and state u have a bigger pay stub but your refund is lower and if we have 0 for both our refund is higher?

Expert Alumni
Mar 27, 2025 2:38:01 PM

Yes.  That is how that  works.  If you have more allowances, you have less withheld and a lower refund (or possibly a higher tax due).

 

If you are sure that there will be no changes and ALL income is accounted for when having all the allowances, it will not be an issue.  However, if you have two jobs or a married couple with 2 jobs and you both are taking multiple allowances, it is possible that too little will be withheld resulting in a tax due at the end of the year.   So, be sure that you account for ALL income when filling out your W4 or state tax withholding form.