Should I Claim 0 or 1 on My W-4?

Why 0 and 1 don't exist anymore

On the old W-4, each "allowance" reduced your withholding. Claiming 0 withheld the most (biggest refund, smallest paychecks); claiming 1 or more withheld less. The 2020 redesign scrapped allowances entirely to make withholding more accurate and transparent. If you started a job in 2020 or later, you've never claimed an allowance.

What replaced 'claiming 0 or 1'

If you want a bigger refund (the old 'claim 0')

• Leave Step 3 blank (don't reduce withholding for dependents).
• Add a flat dollar amount in Step 4(c) to withhold extra each paycheck.
• The trade-off: smaller paychecks all year, a larger refund in spring — an interest-free loan to the IRS.

If you want more cash per paycheck (the old 'claim 1')

• Claim your dependents in Step 3 (qualifying children × $2,200, others × $500 for 2026).
• Leave Step 4(c) blank.
• The trade-off: bigger paychecks, but a smaller refund — or a bill if you under-withhold.