The difference between claiming 0 and 1 on a tax return is that 0 means the taxpayer claims no exemptions while 1 means the taxpayer claims one exemption, according to the IRS. A taxpayer may take one exemption for each person for whom he is financially responsible.Know More
The IRS notes that each exemption reduces a taxpayer's taxable income by $3,650, as of 2014. A single person who is financially responsible for just himself claims one exemption. A person who is claimed as a dependent on another person's tax return, such as a child, must claim zero exemptions. A person who is financially responsible for himself and others may claim one exemption, plus an additional exemption for each of his dependents.
When employees fill out W-4 forms, they should be aware of how many exemptions they are claiming on their tax return for that year, according to Rapid Tax. The number of exemptions the employee claims is used to determine how many allowances need to be claimed on a W-4 form. For example, a person declared a dependent on another taxpayer's return would claim zero allowances, while a person who is single and financially responsible for himself only would claim one allowance.Learn more about Income Tax
Federal withholding is calculated using the W-4 questions answered by the taxpayer, as stated by the IRS. The number of allowances claimed on this form determines how much is withheld from each pay check. The IRS references tables that account for family size, income and filing status.Full Answer >
It takes up to 21 days for a taxpayer to get his or her tax refunds, according to the IRS. Taxpayers can receive their refunds via a paper check, savings bonds or direct deposit.Full Answer >
The balance of a tax account can be checked using the "Get Transcript" tool on the official Internal Revenue Service website, or by calling the IRS directly at 1-800-829-1040. The transcript tool provides options for accessing information about taxes owed, wage and income information, filing details and more.Full Answer >
Income reported a 1099 form is generally treated as ordinary taxable income, according to the IRS, and must be added to the gross income before any adjustments are made on the 1040 or 1040EZ form. However, many individuals who receive 1099 forms also must pay additional self-employment taxes.Full Answer >