The Head-of-Household Filing Status Survived the Tax Cuts and Jobs Act, but…

The Head-of-Household Filing Status Survived the Tax Cuts and Jobs Act, but…

Who is in your tax household? Today, the makeup of households or people sharing a living space are more diverse them ever. A common feature of these units is that living expenses are incurred.

The history of taxation is long and complex. A few things to note is that the United States of America’s government (U.S.) wants to know of the people living within its borders. For example, the U.S. census has been conducted since 1790 and the next one to be conducted is 2020. In addition, The Ways and Means Committee of the House of Representative and the Internal Revenue Service continue to request your name and where you live on the Form 1040, U.S. Individual Income Tax Return.

The next key component of tax return preparation is your tax-filing status. Your tax-filing status describes your marital status and living situation. Also, your tax-filing status (e.g., married filing jointly, married filing separately, single, head-of-household and qualifying widow with dependent child) affects tax benefits such as the standard deduction amount and credits.

There are several general qualifications for the head-of-household tax-filing status such as being an U.S. citizen or resident alien for the entire year. One key change to claiming the head-of-household tax-filing status is a new due diligence requirement mandating paid tax preparers to complete Form 8867, Paid Preparer’s Earned Income Credit Checklist. This form evaluates the taxpayer’s eligibility to claim certain tax benefits and the head-of-household tax-filing status.

For more information on how you can qualify for the head-of-household tax-filing status review the Federal Register, Internal Revenue Code and/or other tax legislation considered substantial authority. A best practice is to discuss your tax situation with a certified public accountant, tax attorney or other well-informed professional. Best wishes!

Spread the love


Pierce, CPA & Advisors "Making Your Tax Experience Happy"