Question

Q2. When determining the Amount of Tax filing status of the tax payer should be determined first to determine tax rates.

Required: Determine all Filing status in US income tax and rank tax rates from lowest to highest.

PLZ NO HAND WRITING OR PIC

THANKS ALOT

Answer 1

Filing status:

Filing status of the taxpayer determines the applicable tax rate, standard deduction, AGI threshold for itemized deductions and other tax credits. There are five types of filing statuses available which have their own criteria, Single, married filing joint, married filing separate, head of household, and qualifying widow(er) with a dependent child.

Single: a taxpayer who is unmarried at the end of the tax year and not eligible to file as head of household can file as single.

Married filing joint or separate: married couple can chose to file married file joint or separate. They must be married at the end of the tax year. If one spouse dies during the year, surviving spouse if not marries to another, can file as married filing joint.

Head of household: a taxpayer who is married, not filing joint return and lived apart for the last six months of the year, or legally separated at the end of the tax year, paying more than half of the costs of maintaining his or her home, which is a principal residence for their qualified child, can file as head of household.

Qualifying widow(er): if taxpayer’s spouse dies during the year, surviving spouse if not remarries during the year, can file as married filing joint. For the next two years, if remains unmarried, and pay over half of the costs of maintaining a household for a dependent child who lived there for the entire year, can file as qualifying widow(er).

Married filing joint and qualified widow uses the same tax brackets and they enjoy lower tax brackets, after them head of household, then single filers, finally married filing separate filers pays the highest tax.