Tag Archive for Correct Filing Status

Choosing The Correct Filing Status – Head of Household (HOH)

If you are unmarried, or married but considered unmarried (see below) on the last day of the tax year, you can file Head of Household if the following conditions apply:

(a) You paid more than half the costs of keeping up a home for the tax year, and

(b) A qualified person (see definition below) lived with you for more than half of the tax year.

Filing Head of Household can have substantial financial benefits over filing as a single status taxpayer. In filing as Head of Household, one enjoys lower tax rates and a larger Standard Deduction. Read More

Written by | Posted in Income Tax • Individual • Tax Deductions • Tax Planning

Choosing The Correct Filing Status

An individual’s tax refund or tax liability depends primarily upon two variables: the individual’s filing status and the taxable income.

Choosing the correct filing status, therefore, is very important, and is really the first step that you take in ensuring that you will end up with an accurately prepared tax return. You need to appreciate this, because your filing status determines a number of very important things, such as; filing requirements, tax deductions, tax credits, tax rate, and ultimately, your correct tax refund or tax liability. In general, filing status depends on whether a taxpayer is considered unmarried or married, and this is determined based on your marital on the last day of the tax year. For federal tax purposes, a marriage means only a legal union between a man and a woman as husband and wife. The word “spouse” Read More

Written by | Posted in Income Tax • Individual • IRS