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.Know More
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
According to the IRS, a taxpayer can write off a portion of his rent if he uses part of his home for business. This area must be designated solely for business and must be the main place of business for the taxpayer's company.Full Answer >
Penalties for filing IRS taxes late include a failure-to-file penalty, a failure-to-pay penalty if a taxpayer owes taxes or losing a refund if taxes are not filed within three years. IRS penalties accumulate monthly due to interest on unpaid taxes, and the penalty reaches a maximum at 25 percent of the total unpaid taxes.Full Answer >
A taxpayer who claims exempt on a W-4 form turned into an employer has Social Security and Medicare taxes taken out of a regular paycheck, according to the Internal Revenue Service. As of 2014, the Social Security tax rate is 6.2 percent and Medicare tax rate is 1.45 percent.Full Answer >
The minimum income requirement for filing a tax return is the standard deduction for that year plus the deduction for one dependent. Because the exact amount for these deductions changes each year, so does the minimum income requirement.Full Answer >