Accounting

Filing Status & Income
Chapter 2
# 32
Five types of filing statuses:
1. Single: person must not be married as of the last day of the year.
2. Married Filing Jointly: must be legally married at the last day of the year with marital status determined by the state.
3. Married Filing Separately: legally married at the last day of the year, but chose to file separately. In this case standard deduction can be only taken if both taxpayers agree to take it.
4. Head of Household: taxpayer most not be married at the last day of the year and must maintain a household for a qualifying dependent for more that half of the year.
5. Qualifying Widow(er) with Dependent Child: taxpayer who otherwise would be legible to file a joint return in the year the spouse died; must be unmarried, and paying more than half the cost of a household that was the principal place of residence of the taxpayer and child for the year.
# 33
Claiming head of household filing status:
a) Yes: taxpayer is not married at the last day of the year and maintains a household for a qualifying dependent child for than half of the year.
b) Yes: taxpayer is not married and maintains a separate household for a qualifying dependent relative.
c) No: although taxpayer is unmarried at the last day of the year she did not maintain a household (paid for more than half the cost of keeping up a home) for the tax year.
d) No: although taxpayer is unmarried at the end of the year, she did not maintain a household for more than six months.
# 34
A taxpayer can claim one exemption for himself and one for the spouse and may qualify for an additional exemption for each dependent. However, a taxpayer that can be claimed as dependent by another can’t claim a personal exemption for himself.
# 38

If they didn’t get married at the last day of the year and filing as singles:
Julio’s taxable income: $45,000 – Standard Deduction Single 5700 – 3650 Single Exemption = 35,650 – Amount of tax for 2009 is $5,094;...