Business & Finance Taxes

How to Change the Personal Exemptions for Your Paychecks

    • 1). Review your financial and personal situation periodically throughout the year to determine if you need to change your personal exemptions. If you got married, for example, you may be able to claim your spouse as a personal exemption.

    • 2). Complete the Personal Allowances Worksheet section of the W-4 to adjust your exemptions. If you are reducing your dependents, for example, complete line D; and if you are changing your filing status to Head of Household, complete line E. Keep the allowances worksheet for your records.

    • 3). Fill out the Employee's Withholding Allowance Certificate section to reflect the changes you made in the Personal Allowances section. Sign and date the form; give this section to your payroll personnel.

    • 4). Follow your state revenue agency's guideline for adjusting personal exemptions for state income tax purposes, if applicable. If you work in Georgia, for example, complete a new Georgia Employee's Withholding Allowance Certificate to adjust your personal exemptions.

    • 5). Submit the new W-4 and/or state withholding allowance certificate in time for the pay period you want the change to happen. Ask your payroll department for the submission date.

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