I really don't understand the whole W-4 form and some questions on it says to put 1 for yourself. So I end up claiming 3... Is this bad for me? And is there anyway I can change it or Avoid paying the IRS? :(

No - you can not avoid paying taxes, you can only postpone the inevitable. Claiming 3 is not necessarily good or bad. The objective is to determine how much should be withheld from your pay check to account for your particular circumstance. If you claim too many allowances on your W4 you could end up owing a lot of money to the IRS at the end of the year - and if you owe too much the IRS could penalize you for underpayment during the year. So don't claim more allowances than the instructions suggest. On the other hand if you put down too few allowances you will be overpaying through excessive withholding - you will then get a big refund at the end of the year, but that means you haven't had use of your own money all year long. Follow the directions and you should be fine.