Jan 30, 2008

Head of Household/Withholding Allowances

QUESTIONS: I have a couple of tax questions for you. 1) In order to file "Head of Household" a person must have a dependent - is this correct? 2) In order for more Georgia tax to be withheld, should I change my single filing status to "0" or "1"?

ANSWERS: Thanks for submitting your questions! Here is the scoop:
1) In order to qualify for Head of Household filing status, you must:
-- have a qualifying child or other person who is your dependent. These persons must pass 1) the relationship test, 2) the age test, 3) the residence test, and 4) the financial support test. Another way to qualify for this filing status is by maintaining a separate household for a parent. I suggest you refer to IRS Publication 501 for more information on this subject. You can find this and other great information at www.irs.gov.
2) The general rule for payroll tax withholding is that the fewer exemption allowances you claim, the more withholding tax that will be deducted from your paycheck. Conversely, the more exemption allowances you claim, the less tax that will be deducted. Using your example, changing your withholding exemption allowances to "0" will result in more tax deducted from your check than changing to "1" allowance.

0 responses:

  © Blogger templates The Professional Template by Ourblogtemplates.com 2008

Back to TOP