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What are the advatages in claiming head of household for income taxes.? |
What are the advatages in claiming head of household for income taxes.? Head of Household standard deduction for 2005 tax year is $7300, while Single is only $5000. If you are eligible for Head of Household, then you can lower your Adjusted Gross Income by $2300, which will lower your total tax due. If you are planning to itemize deductions and are eligible for Head of Household, make sure your itemized deduction total exceeds $7300, otherwise use the standard deduction. Source(s): www.irs.gov I believe better deductions. and possibly a bigger earned income credit. I would go onto the IRS website and check it out just to make sure. The advantage is that you get a larger standard deduction and lower tax rates. The standard deduction is 7300 for head of household rather than 5000 for someone filing as single. For someone with 50K of taxable income they will pay 9165 in taxes as single and 7998 as head of household. At 29700 of taxable income the taxes are 4090 for filing single and 3932 for head of household. I included a link for the tax rate tables. http://www.irs.gov/formspubs/article/0,,... Modified 1 year ago |
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