Q:

Is it better to claim 1 or 0 on your taxes?

A:

Quick Answer

Regardless of if a person claims 1 or 0 on their W-4 tax form, they will still pay the same amount in taxes at the end of the year, but if the person claims 0 then he or she will have more money taken out of each paycheck and possibly have a larger tax refund, and if they claim 1 then they will have less money taken out of each paycheck but a lower or possibly no tax refund. It is most often up to personal preference whether a person wants more taken out of each paycheck and a return at the end of the year, or more to live on each month but a smaller or potentially zero refund at the end of the year.

Continue Reading

Full Answer

The higher the number claimed on the W-4 tax form, the less money is taken out of a person's paycheck for taxes. If a person claims 0, then they have the maximum amount of money taken out of each paycheck each pay period. This means, however, that at the end of the year they may have had more money taken out than they actually owe, and they will receive a large tax return. If a person claims 1, they will have less money taken out each pay period. However, this means that they may not get a tax refund and could possibly still owe tax money at the end of the year. It is up to personal preference whether an individual wants to get a larger tax return or to have more money each pay period.

Learn more about Income Tax
Sources:

Related Questions

  • Q:

    What is federal tax withholding?

    A:

    Federal tax withholding is an amount held from a regular employee's paycheck that goes toward his federal tax obligation. The amount an employer withholds from each paycheck is based on information provided by a worker on a W-4 form, according to the Internal Revenue Service.

    Full Answer >
    Filed Under:
  • Q:

    What is exemption from withholding?

    A:

    An exemption from withholding is when someone has no tax income liability and is exempt from having income taxes withheld from her paycheck. The exemption is only for income taxes, so Social Security and Medicare taxes are still withheld.

    Full Answer >
    Filed Under:
  • Q:

    How do you calculate your taxes owed or refund amount for 2014?

    A:

    Taxpayers can calculate their 2014 refund or taxes owed by finding gross income, applying all relevant deductions, subtracting deductions from gross income and multiplying the amount remaining by the appropriate tax rates, according to the Internal Revenue Service. Personal income tax is calculated and filed on Form 1040.

    Full Answer >
    Filed Under:
  • Q:

    How do you calculate your taxes using Georgia taxable income tables?

    A:

    To use the Georgia income tax tables to calculate your taxes, look up the bracket your Georgia taxable income falls under, and locate your tax amount under the column for your filing status, either single, married filing jointly, head of household or married filing separately. The Georgia income tax table is available in Form 511, which provides the instructions for Forms 500 and 500EZ, according to the Georgia Department of Revenue.

    Full Answer >
    Filed Under:

Explore