Explain to me the whole claim 0 or 1 on your tax forms at work?

Question

i got a new job and i claimed 0,if i switch to 1 will my tax check be lower even though i claim my little sister bacause i give her alot of money out of my checks to her

Answer 1

There are rules and regulations about who you can claim on your income tax and just giving some money out of your check is not sufficient to claim your sister but you can check that out at www.irs.gov. When you fill out your W-4, there are questions that will help you fill it out correctly for your situation. If you have no exemptions to claim at tax time, you will owe more taxes. So if you fill out 0 (for no exemptions), more money will be taken out of your check. Taxes are based on the ablility to pay so they try to remove the correct amount on a regular basis so that at tax time you owe nothing.

Answer 2

Giving a lot of money out of your check to your little sister does not necessarily mean that you can claim her - there are several other rules that must be met, and you don't give enough info to say whether you can claim her or not. How old is she? Is she a full-time student? Does she have a job, how much does she make, does she provide over half of her support, do YOU provide over half of her support? Does she live with you? Do you have parents who might also be able to claim her? All of these things enter into whether or not you can claim her.

If you switch your W-4 to 1 instead of 0, you'll get more in each paycheck, but your refund, if you have one, will be smaller by the extra amount you get through the year.

Answer 3

The "0" and the "1" represent exemptions that you plan on taking when you file your tax return next April.

The higher the number you use, the lower your federal income tax withholdings will be - resulting in a higher net take-home pay during the year.

Your selection of a "0" or a "1" will NOT change your tax liability. The only way you can do that is to actually take an exemption for a dependent on your tax return - which in certain circumstances, your little sister could qualify as your dependent.

If you clarify your facts a little more, it would be easier to answer your question - assuming what I've said above isn't enough.

Answer 4

If you claim 1 on your w-4 form at work they will take a lot less out of your weekly/biweekly or monthly checks but at tax time you may owe the government or they may not give you as much as they have. I personally claim 0 and I take an additional 30 dollars out per pay period and I have done this for the last 16 years and I usually get anywhere from 2500 to 3000 dollars back.

Answer 5

If you are referring to the W-4 form, it does nothing to change the amount of taxes ultimately paid to the Federal Government based on your earnings. It does however affect the amount of money withheld by your employer to pay your taxes. The more dependents you claim on the W-4, the less that your employer will withhold (i.e. take out of) from your paycheck for Federal taxes.

Answer 6

Yes. Finally got a dd date this morning for 2/8. I was accepted on 1/31.

Answer 7

if you claim 0, they take the most taxes out of each check and (if claiming yourself when you file) you get the best return. it is usually used by people who have someone else claiming them as a dependent on their taxes (parents).

claiming 1 means you get a lower return, because they take less money out of each check. and just because you give your sister money doesnt mean you can claim her on your taxes, unless you are her guardian, and totally supporting her, typically one of her parents would claim her.