Clarifying Head of Household Issues [CPA Journal, The]
SPRINGFIELD, Ill., Oct. 21, 2011/ PRNewswire/-- Horace Mann Educators Corporation will release its third quarter 2011 earnings on Wednesday, October 26, 2011 after the market closes. Management will host a conference call to discuss the financial results on Thursday, October 27, 2011 at 10:00 a.m. ET. SOURCE Horace Mann Educators Corporation. As work styles have changed throughout the years, more taxpayers have started working from home. With the help of modern technology, having a home office has become more practical and efficient. The concept of working from home affects many facets of an individual\' s life, such as commuting time, travel expense, and, of course, tax issues.Taxpayers who are not married or who are considered unmarried may be able to file a tax return as head of household (HOH) if certain conditions exist. HOH filing status gives the taxpayer a higher standard deduction and lower tax rates that fall between the rates for filing jointly and the higher rates for filing singly. In the 2004 tax year, 19.6 million HOH returns were filed, representing 14.9% of all returns filed in that year. For 2008 (the most recent year for which data are available), 21.1 million HOH returns were filed, which was 14.8% of all returns filed that year ( , "Individual Income Tax Returns," Publication 1304, Table 1.2).
The following is a brief review of the HOH filing status, focusing on the definition of qualifying person, which allows a person who might otherwise have to file as a single taxpayer to file using HOH status. Other HOH issues - including multiple heads of household in the same residence, itemized or standard deductions when a HOH claimant is deemed "unmarried," and the results of a disallowed HOH filing status - are also discussed.
Married Filing Single Form - News
Consider the following scenario: Two taxpayers are married at the end of the tax year. They do not file a joint return; however, one taxpayer qualifies to file as HOH, while the other files as married filing separately. The taxpayer who qualifies for
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Tax Benefits for Higher
ABSTRACT
FULL TEXT A Planning Toolbox for CPAs With annual college expenses running as high as $50,000, CPAs should be aware of the opportunities the IRS offers taxpayers for 2011. Although, dollar for dollar, credits are usually the preferred choice, CPAs should help taxpayers review the requirements and limitations of both credits and deductions and choose the method that will best minimize their tax liabilities. Tax Benefits for Saving for Higher Education IRC section S29 plans. Under IRC section 529, individuals may contribute to a qualified tuition program (QTP) on behalf of any beneficiary.