Week 4 Project

Letter

Alexis Aguirre Leon

Keiser University

TAX2004G2 Taxation

Date: 9/29/2020

Dear Russell and Denise,

Depending on your filling status that you choose, it must affect your tax bill and tax forms. There are five major types of taxing status .Head of house which is mostly for the unmarried of which is for who pays most of housing costs. Married filing separately is for the married but have trust issues with filing and each earns highly. Qualified widow or widower are for those that lost spouses during the taxing year and have children or dependents .Finally single status which is for the unmarried and will not qualify for any other filing status.

There is a deference that comes to your tax returns when you claim a dependent. Your tax return and liability will be reduced when you add a dependent to your tax returns. With claiming a dependent on your returns, you will gain benefits like head of house status and child and care credit. The dependent should ensure that he or she meets the claims from the IRS International Revenue Service for dependents. There are some rules that IRS has come up with to regulate child or adult dependency.

A child is a child weather step, adopted or natural .For the dependent to qualify there as certain tests that they must pass. Relationship test which one may be a sibling step child or dependent.Residecy test which one must have lived with them for more than half a year. He or she must be below nineteen years of age. Support test where the dependent may not qualify if he or she is able to provide for herself almost half of her needs.

For one to meet the head of house status one must be able to provide for almost half of the needs like rent food insurance maintenance and taxes. Education and clothing are not included in the list. The qualifier will always be the father or mother to the dependent and he or

she will be the one enjoying the tax exemptions. In addition to the tests, the child to be added to the taxpayer’s household must be a U.S citizen. If the dependent is claimed by another person the dependent won’t be claimed again.

In conclusion according to Taxing Times for Divorced, both taxpayers and the real parents will not file for joint returns; the one qualified will be the one who has lived with the child for long which is applicable in the case.

Sincerely,

A.A

References

Berry-Johnson, J. (2020). Head of Household IRS Tax Filing Status & Qualifications vs. Single.

Money Crashers. Retrieved 30 September 2020, from

https://www.moneycrashers.com/head-of-household-filing-status-qualifications- single/ .

TurboTax – Taxes, I. (2020). Getting Divorced - TurboTax Tax Tips & Videos.

Turbotax.intuit.com. Retrieved 30 September 2020, from

https://turbotax.intuit.com/tax-tips/marriage/getting-divorced/L20NC66cf .

Fundamentals of Taxation. (2020).