The difference between claiming 0 and 1 on a tax return is that 0 means the taxpayer claims no exemptions while 1 means the taxpayer claims one exemption, according to the IRS. A taxpayer may take one exemption for each person for whom he is financially responsible.Continue Reading
The IRS notes that each exemption reduces a taxpayer's taxable income by $3,650, as of 2014. A single person who is financially responsible for just himself claims one exemption. A person who is claimed as a dependent on another person's tax return, such as a child, must claim zero exemptions. A person who is financially responsible for himself and others may claim one exemption, plus an additional exemption for each of his dependents.
When employees fill out W-4 forms, they should be aware of how many exemptions they are claiming on their tax return for that year, according to Rapid Tax. The number of exemptions the employee claims is used to determine how many allowances need to be claimed on a W-4 form. For example, a person declared a dependent on another taxpayer's return would claim zero allowances, while a person who is single and financially responsible for himself only would claim one allowance.Learn more about Income Tax
The 2013 earned income tax credit table describes the amount of tax credit a taxpayer can claim on his return, according to IRS Tax Map. The EITC table lists credit amounts based on the total a taxpayer calculates on the EITC worksheet.Full Answer >
Penalties for filing IRS taxes late include a failure-to-file penalty, a failure-to-pay penalty if a taxpayer owes taxes or losing a refund if taxes are not filed within three years. IRS penalties accumulate monthly due to interest on unpaid taxes, and the penalty reaches a maximum at 25 percent of the total unpaid taxes.Full Answer >
The address for mailing a federal tax return depends on the taxpayer's state, notes the Internal Revenue Service. The IRS offers a clickable state map with links to the addresses for mailing a paper return. To find the map, click on Help & Resources from the IRS home page, and then scroll down to the Contact Us box, and click on Where to Mail Your Paper Tax Return and click on Taxpayers and Tax Professionals - Where to File Individual Tax Returns.Full Answer >
The standard tax deduction is a set amount a taxpayer deducts from his income on a federal tax return without the need to itemize his deductions, according to TurboTax. For 2015, the standard deduction is $6,300 for single taxpayers and $12,600 for couples filing jointly, reports Kelly Phillips Erb for Forbes.Full Answer >