Should I claim 0 or 1 for Exceptions < Please Clarify?

Question

Greetings all,

My wife just got her 1st job and one of the forms says to put down a 1 or 0 for taxes? what should we pick?

we would like a bigger return when we file income tax returns...

or would it be better to take home a higher paycheck now and possibly end up payin end of year?

let me know the PLUS'es and MInus'es of doing one or the other..

THANK YOU KINDLY!!

oNe

Answer 1

I put 0 down and I haven&#039;t had to give the IRS money in April for over 10 years.

Answer 2

Assuming you are also working, she should probably put 0 allowances on her W-4 to avoid owing at tax time.  

You do realize that a bigger refund just means that you had too much taken out of your paychecks - it&#039;s not extra money, it&#039;s the same total amount, the only thing that changes is when you get it.  If you get a large refund it just means that you made a no-interest loan to the government.  If your goal really is a large refund, fill out a new W-4 requestiong that $100 a week extra be withheld from your paycheck.  You&#039;ll get an extra $5200 as a refund.  Doesn&#039;t sound like a good idea?  I didn&#039;t think so.

Answer 3

well, if you put down 0, they&#039;ll take out the most and you&#039;ll get the biggest return, but that means a weaker paycheck. but you shouldn&#039;t have anything to pay in april.

if you put 1 they&#039;ll take out less... stronger paycheck, but you might have to pay something in april.

it all depends on whether you want the money now or later.