That’s because hitting zero with the taxman — that is, neither owing a balance nor receiving a refund — is an indication that you paid exactly the amount of tax liability you owed. A select group of taxpayers managed to hit that goal during the 2016 tax year, according to SmartAsset’s analysis of IRS data.

What happens when you claim 0 on your taxes?

Claiming 0 on Your Taxes. When you claim 0 on your taxes, you are having the largest amount withheld from your paycheck for federal taxes. If your goal is to receive a larger tax refund, then it will be your best option to claim 0. Typically, those who opt for 0 want a lump sum to use as they wish like: Pay bills; Go on vacation; Put towards a loan

What happens when your adjusted gross income is zero?

Once you have subtracted deductions from your adjusted gross income, you have your taxable income. If your taxable income is zero, that means you do not owe any income tax. Unlike adjustments and deductions, which apply to your income, tax credits apply to your tax liability, which means the amount of tax that you owe.

Can You claim both jobs and 0 on your taxes?

If you are single, have no dependents, and have 2 jobs, you could even claim both jobs on one W-4, and 0 on the other. Claiming 0 on Your Taxes. When you claim 0 on your taxes, you are having the largest amount withheld from your paycheck for federal taxes. If your goal is to receive a larger tax refund, then it will be your best option to claim 0.

What to do if you have a balance due to the IRS?

If the taxpayer’s balance due is $50,000 or less, the taxpayer can apply online for a payment agreement instead of filing Form 9465, Installment Agreement Request. To do that, go to IRS.gov and enter “Online Payment Agreement” or “OPA” in the “Search” box.

Which is the correct form for a zero income tax return?

Choose the correct form. There are 3 different versions of the standard tax return: the 1040, the 1040A, and the 1040EZ. If you’re filing a zero income tax return, you’ll probably not be using a 1040EZ, which is for individuals with no dependents claiming no credits. Most likely, you’ll be filing the 1040A. [2]

When to file a balance due tax return?

Balance Due Returns General Information • Taxpayers don’t have to pay if balance due is less than $1. • Payment in full is due by the April filing due date to avoid interest and penalties. • Taxpayer should file his or her return by the April filing due date to avoid a failure-to-file penalty.