When filling out one's W4...what are the tax implications for claiming "0" or "1"?

Answer 1

For a Weekly Paycheck of $300 and Status Single:
Federal withholding for W4 allowances 0, 1 are $30, $20

For a Weekly Paycheck of $400 and Status Single:
Federal withholding for W4 allowances 0, 1 are $45, $35

If you want more Federal and State tax withholding to be deducted from your paycheck, then claim 0. Then you may get a fat refund check.

Answer 2

Hi Pete,

To figure out the exact difference in your pay go to the website:

www.paycheckcity.com

Enter in your information and they will tell you what the withholding will be. As for if it is enough at the end of the year, figure out what your % was last year, and if you income hasn't changed that much, mulitply it by your income this year. It is always better to owe a bit than get a refund (otherwise the government is getting a free loan).

Answer 3

If you claim "0" they'll take out a little more from each paycheck than if you claim "1". If they take out too much for the year, you'll get a refund. If they don't take out enough, you'll owe when you file your tax return early next year.

Answer 4

0 just means that you aren't even claiming yourself, and that the maximum will be withheld from your paycheck, 1 means that you are claiming yourself, and the next to the most will be withheld from your paycheck.