Understanding the Filing Status
We already discussed, the 5 filing status available. please elaborate from each one of the filing statuses:
What is the difference between Single and Head of Household filing status?
How would you explain the Tax deduction (observation, does not include adjustment) to a tax client when is Single and Have 50500 gross income in a W2, and 4,500 as tax withholdings?
Answer:
Head of hosehold is a filling staus for single or unmarried taxpayers who keep up a home for a qualifying person. the head of household filling status has some importtant tax advantages over the singke filling status.Also heads of household must have a higher income than single filers before they owe income tax.
The heads of household status can lead to a lower taxable income and greater potential refund than the single filling status, but to qualify you must meet certain criteria. To file as head of household you must be cosidered unmarried for the tax year and you must have a qualifying child or dependent.
Gross Income= 50,500
Tax Withholding = 4,500
Here tax deduction of 4,500 be allowed to single
Get Answers For Free
Most questions answered within 1 hours.