According to Turbo Tax, if the taxpayer is single and never married or legally separated, the filing status of single can be claimed on the tax return. If multiple filing status apply, choose the status that yields the lower tax, Turbo Tax advises.
Turbo Tax explains, the federal filing status informs the Internal Revenue Service, also known as the IRS, as to the exemptions, credits, and deduction due to the taxpayer on the tax return. Determining the correct filing status ensures the taxpayer is given all applicable deduction, which lowers the taxable obligation to the IRS.
The filing status claimed is determined by the taxpayers legal martial status as of the last day of the year, notes Turbo Tax.Learn More
No matter what time of year a bonus is paid, it's taxable under the heading of supplemental wages, according to the SBS CPA Group. In fact, the IRS requires that employers hold out a "supplemental rate" of 25 percent, although some employers assume that by making the original bonus bigger.Full Answer >
Catholic school tuition is not deductible on a U.S. income tax return. To be deductible, the school would have to provide post-high school education, according to the Internal Revenue Service.Full Answer >
As of June 2014, amounts deferred in 401(k) plan contributions are subject to FICA tax. However, according to the Internal Revenue Service, 401(k) contribution amounts are not considered as income for federal income tax purposes.Full Answer >
How much someone has to earn before being required to file a federal tax return depends on age and filing status, according to the IRS. For most taxpayers with a single filing status under 65 at the end of 2014, gross income must be at least $10,150.Full Answer >