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For unmarried taxpayers with dependents, qualifying for head of household over single filer status can generate major tax savings through larger standard deductions and more favorable income tax ...
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The head of household filing status was created in 1951 to acknowledge the additional financial burdens faced by single people caring for dependents. [ 3 ] [ 1 ] Consequently, it provides single parents and other people caring for qualifying dependents with a larger standard deduction and preferential tax rates compared to single filers ...
A "dependent" for these purpose includes grandchild and step-grandchildren, not just children and stepchildren. [13] Filing as a head of household can have substantial financial benefits over filing as a single status taxpayer. As a head of household, one may obtain a more generous tax brackets and larger standard deductions. [14]
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The general rule is that a personal exemption may be taken for a dependent that is either a qualifying child or a qualifying relative. § 152(a). However, there are several exceptions to this rule. Taxpayers who are claimed as dependents of others cannot themselves claim personal exemptions for their qualifying dependents. § 152(b)(1).
First, multiply the number of qualifying children under age 17 by $2,000. Then, multiply the number of other dependents by $500. Add the two amounts together, and enter the total in the field on ...
Head of household is a tax filing status that’s designed for parents or adults who have a qualifying dependent and meet other guidelines. To claim head of household on your taxes, you must: