taxpayer whose spouse died in either of the two years preceding the tax year

Taxpayer whose spouse died in either of the two years

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taxpayer whose spouse died in either of the two years preceding the tax year, and who has not remarried, may file as a surviving spouse provided the surviving spouse maintains a household for a dependent child or stepchild Tax Returns of Dependents Standard deduction for an individual who can be claimed as a dependent on the tax return of another taxpayer is the greater of the individual’s earned income plus $350 or $1,050. An individual over 18 or a full-time student over 23 will not qualify as a dependent if income exceeds $4,050 An individual may not claim a personal exemption if the individual can be claimed as a dependent on another taxpayer’s return It does not matter whether the other taxpayer actually claims the exemption Filing Requirements The obligation to file a return depends on the amount of gross income, marital status during the year, and age. Only income which is taxable is included in the computation of gross income on order to determine whether or not a return must be filed Tax Tables Based on taxable income Apply to taxpayers with taxable income of less than $100,000 Separate tables are provided for single taxpayers, married taxpayers filing jointly and surviving spouses, married taxpayers filing separately, and heads of households Tax Rate Schedules The tax rate schedules are used by those taxpayers not eligible to use the tax tables Self- Employment Tax Individuals with net earnings from self-employment of $400 or more are subject to the tax A taxpayer is entitled to a deduction from gross income of one-half the self-employment tax. Taxpayers are required to pay social security tax on behalf of qualified domestic employees
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Generally, the household employer and domestic employee share the burden of the nanny tax. The household employer’s share is not deductible unless it can be classified as a business expense. The domestic employee’s share is never deductible
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  • Spring '14
  • JosephJ.Galante
  • Taxation in the United States

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