In: Accounting
2019- W2
Form Phan Mai is single with two dependent children under age 17. Phan estimates her wages for the year will be $42,000 and her itemized deductions will be $14,000. In the previous year, Phan had a small tax liability. Assuming Phan files as head of household, use Form W-4 to determine the number of withholding allowances Phan should claim. If an amount is zero, enter "0".
The following conditions to be complied for getting status of head of household:
1.Sometimes even the taxpayers are not divorced or legally separeted, they are considered as unmarried, Such type of taxpayers can use the Head of Household filing status.
2.They should spend more than half of the income for meeting the day to day household expenses in a year, whether that house is their own or qualified parents house.
3.The person lives with more than half year with the head of house hold, then they are dependent parents.
The following are the Form W-4 deduction:
1. The itemized deductions will be 14,000, but the limit of standard deduction is limit to $9,350.
2. No other expenses are mentioned in question, Hence the total deductions allowed is $9,350
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