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.

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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.

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