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
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 >
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 >
Regardless of if a person claims 1 or 0 on their W-4 tax form, they will still pay the same amount in taxes at the end of the year, but if the person claims 0 then he or she will have more money taken out of each paycheck and possibly have a larger tax refund, and if they claim 1 then they will have less money taken out of each paycheck but a lower or possibly no tax refund. It is most often up to personal preference whether a person wants more taken out of each paycheck and a return at the end of the year, or more to live on each month but a smaller or potentially zero refund at the end of the year.Full Answer >
Disability income and certain benefits from the Department of Veterans Affairs is not taxable and should not be included as gross income on a recipient's tax return, says the Internal Revenue Service. This includes disability compensation and pension payments for disabilities that are paid to a veteran or his family.Full Answer >