W2 Form help?

Question

What is the difference between claiming 0 or 1. I just started a new job and counldn't really understand this. I am single, no kids and not married.

Answer 1

Single 0 is an option for people who want a lot of money taken out of their check. You can claim single 1 or single 0 in your situation. Either way, you're likely to get a refund if you live a simple life (no business, no investments, no passive income, etc.)

Single 0 will just give you a bigger refund.

Answer 2

Here are the instructions from the W4.
You get 1 for yourself if no one else claims you.
You get 1 if you are single with one job, or married with one job and wife does not work, or your wages from a second job is $1000 or less.
You get 1 for your spouse.
You get 1 for each child.
You get 1 for head of household
You get 1 if you have at least $1500 child care expenses

Add all together. This means that normally a single person will claim 2. You can always claim less but never more on the W4. The lower the number, the more tax withheld.

Don't forget that exemptions on the W4 are not the same as deductions on your tax form. When you file taxes you get a standard deduction if you do not itemize PLUS deductions for each person. that is why you put 2 on the W4.

Answer 3

The more exemptions you claim the less taxes are taken from your paycheck (federal taxes). As a single person with no kids I recommend "0" for half the year and "1" for the other half. You can change your withholding at any time by requesting another W2 from your HR or Payroll department.

If you claim "0" all year long you will probably get a bigger federal tax refund at the end of the year. If you claim "1" all year long you will either get a very small refund, none at all, or owe a small amount. But your refund/tax liability will depend on your total income for that tax year.

Answer 4

The W-4 is the form that tells your employer how much to withhold for Federal income taxes. Your state probably has a similar for for state taxes. The more allowances you claim, the less they withhold (more money in your check). This does not change the actual amount of tax liability when you file your tax return. The goal should be to match your withholding to your tax liability. In your case, claiming 1 or 2 will probably come closest. The link below is a calculator the IRS provides to help decide how many to claim.

Answer 5

It all depends on the amount of taxes you would like deducted from your check every pay period. for the most refund you would claim zero dependents/ exemptions, in this case more taxes will be deducted from you check and you will get a bigger tax refund at the end of year. if you choose to elect 1 exemption which would be you claiming yourself as 1 then you would put single with one exemption, in this case they will deduct a little less and you will receive a refund less then if you claimed no exemptions. so it comes down to wheter or not you want more or less taxes taking out of your checks.

Answer 6

If you are single with no kids and you don't Itemize using Schedule A, you should claim zero. End of story. Please ignore the users who told you to claim 1. If you claim zero, they will withhold more. However, if you had seen as many young single men/women as I have who have put 1 Exemption on their W4 and then ended up owing at the end of the year, you would say the same thing.

Answer 7

It is better for you to claim 1. This will caused the government to withhold a lower amount in taxes so you will have more money in your pocket now. If you claim zero, you will have the same outcome when you receive your tax refund (less the interest you could have earned in a bank account)

Answer 8

It determines the amount of money withheld from your check for taxes. Here is a link to the IRS Withholding Calculator: http://www.irs.gov/individuals/article/0,,id=96196,00.html