Tax Tip: Head of Household
Everyone must choose a filing status when preparing their tax return. A common mistake is to file as single rather than Head of Household. Head of Household status provides expanded tax brackets and a higher standard deduction than the single filing status. Normally, we assume that only single parents can file as Head of Household. However, you may as well, if you pay for over half the cost of providing a parent a home. They do not even need to live with you to take this tax break, but you do need to claim them as a dependent. There are other filing status rules. Make sure you claim the correct filing status in order to receive the best tax benefit possible.
If you have questions about filing status or need assistance with your tax return preparation call the accountants at Ketel Thorstenson with offices in Rapid City, Custer, Spearfish, and Williston. We are here to help. We are your “Friends for Life.”