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 about Income Tax
According to TurboTax, in order to claim a child on a tax return, a Social Security number must be provided. Social Security cards cannot be applied for until a baby is born. Failing to file the number on the tax return results in a fine and investigation.Full Answer >
Federal withholding is calculated using the W-4 questions answered by the taxpayer, as stated by the IRS. The number of allowances claimed on this form determines how much is withheld from each pay check. The IRS references tables that account for family size, income and filing status.Full Answer >
To calculate income taxes, a person should consider his income minus any relevant deductions, then multiply the result by the tax rate or use IRS tax tables. Income can include salary, earnings from dividends and investments, royalties, gambling earnings and lottery winnings. Deductions can include medical expenses, retirement contributions and interest expenses.Full Answer >
Those who earn more than a certain amount of money must file a tax return; a return must be filed regardless of whether a refund is expected or tax is due. The amount of money that can be made before it becomes mandatory to file an income tax return varies based on the filing status, type of income and age of the taxpayer, according to the IRS.Full Answer >