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What is your filing status?

The filing status is critical to determine your filing requirements, eligibility to certain credits, and correct tax. Internal Revenue Service (IRS) provides five filing status categories: Single Married Filing Joint (MFJ) Married Filing Separately (MFS) Head of Household (HOH) Qualified Widower (QW) Single A taxpayer can file the single status if the taxpayer is considered unmarried or legally separated at the end of the tax year. A single taxpayer may also be eligible to file Head of Household or Qualifying Widow status, if the taxpayer satisfies certain requirements. Head of Household (HOH) Compared to the single status, HOH contributes to a lower tax from a larger standard deduction. A s

Families with Children

For families with children, parents can claim certain credits and deductions to reduce their tax liabilities. If you have a qualified child, you should take advantage of following child tax benefits. Child Tax Credit The maximum amount that you can claim is $1,000 per qualifying child. However, you must reduce the credit amount for each qualifying child by $50 of each $1,000 modified adjusted gross income (AGI), if your AGI is above: Married Filing Jointly: $110,000 (no child tax credit if MAGI exceeds $130,000) Single, Head of Household (HOH), or Qualifying Widow (QW): $75,000 (no child tax credit if MAGI exceeds $95,000) Married Filing Separately (MFS): $55,000 (no child tax credit if MAGI

Education Tax Benefits

If you pay for the educations costs or higher education to yourself, your spouse or your dependents, you may receive various tax benefits from education deductions, credits and saving plans. Education Deductions Deductions are the amounts that reduce your taxable income, therefore decrease the total tax amount. There are several education tax deductions: Tuition and Fees Deduction: You may be able to deduct up to $4,000 qualified expenses, for higher education, during the tax year for yourself, your spouse or your dependent (This provision will expire after the tax year 2016). Student Loan Interest Deduction: You may be able to deduct up to $2,500 interest expenses that you paid on a qualifi