Do I get state and federal taxes back in my tax returns if I claim 0?

Answer 1

Did you pay taxes?

Answer 2

You've got a Senior Controller telling you not to claim "zero" on your W-4. What do you think about that?

Here's the rub:

When you claim "single" and "zero", you're telling your employer to deduct the maximum allowed from your paycheck. The only way to NOT get a refund in this situation, really, is for you to be receiving income from another source that isn't being taxed, especially from a business. If this is your only source, you'll get a refund from both federal and state if you work enough to have some taken out.

What the Alien Accountant is trying to do, though, is discipline you. He thinks that you can take the money out on your own and open up an account and (on your own) faithfully put money into that account and never touch it.

Do you think it will work?

He's right, you'll enjoy the interest instead of letting the government have it tax free. And if you're like most of us schmucks, that will amount to somewhere around $40 per year for every $1000 you're able to squirrel away.

(That's at 4%, a generous money market or CD.)

What happens if you get tempted and spend it? Not only do you lose your interest, you lose your savings, too.

So it really comes down to your own judgment of how disciplined you are. If you don't know, here's another suggestion:

Have the bank do it for you. Ask for a money market account that you can make regular deposits into. If they offer you anything less than 2%, laugh at them and go to a credit union. Just ask them to set up an automatic withdrawal for you into an account that you can't access from an ATM. That way, if you don't touch it, you might forget that it's happening.

Otherwise, using Uncle Sam's 0% savings plan is not a bad deal. At least you're saving.

Answer 3

Claiming zero deductions from your paycheck is the ABSOLUTE BEST way to make sure that you are going to get a refund.

However you would be better off, financially speaking since the IRS and State Tax Boards do not pay interest on taxes withheld, if you determined what deduction level would bring you closest to breaking even and putting the difference in to a savings account.

After about a year or so you would probably have enough saved up, depending on your income level, to invest in to a Certificate of Deposit.

You can determine what deduction level would bring you closer to breaking even on your tax returns by checking out tax levels at www.irs.gov and your State's Tax Board's website will have tax schedules for your local taxes as well.

Good Luck!
D.L. Shields
Sr. Controller
Alien Accounting Services

Answer 4

Maybe.

If you have only one job and it's your only source of income you'll almost always get something back by claiming 0 on your W4.

If you have several part time jobs, it's entirely possible to claim 0 on each of them and still have a HUGE tax bill at the end of the year.

There are 2 worksheets on Form W4 that you should complete if you have itemized deductions, multiple jobs, or other sources of significant income. These will help you in figuring out the correct way to fill out Form W4 for any and all jobs.

Answer 5

claiming 0 is for W-4 & leads to higher witholding. Means you get a larger refund (normally) at YE which is bad. Interest free loan to govt. Amount of total tax you pay for yr does not change just when you pay it.

Answer 6

Claiming -0- on your exceptions for payroll means that they will withhold the max imam amount of Federal and State income tax. Whether you get a refund or not depends on many variables, such as ;
whether you have other income such as interest and dividends
depends on the amount of income you have
Whether you owe money for child support or a student loan that is overdue

Answer 7

for any details regarding federal & state taxes go for this website address u will get information and also u can file the taxes from this site. this will also provide u tax deductions . try this out all the best.

Answer 8

You didn't give us much to go on. I'm assuming you have income because you claimed 0 dependents. But we don't know if you are married or if you have additional dependents (children), are you married?? A little more information would be appreciated.