Is there any added tax advantage to claiming more than one child Under Head of household? What if any added advantage is claiming two versus one?
2007-03-13 10:55:05 · 4 answers · asked by mike f 1 in Business & Finance ➔ Taxes ➔ United States
When you file as HoH, you list all of your dependents. It's not a "pick and choose" situation.
2007-03-13 11:15:09 · answer #1 · answered by Bostonian In MO 7 · 2⤊ 0⤋
The child will obviously give you another $3,300 dependent deduction. But the benefit is HOH tax rates. Filing HOH means you are paying tax at lower rates.
2007-03-13 11:17:32 · answer #2 · answered by tma 6 · 1⤊ 0⤋
When you fill out your paper work for your job you can claim as many exemptions that you want. That means they will take LESS taxes from your paycheck. But when you file your taxes, you may not get as much back and if you claimed more than your allotted, you may have to owe depending on how much money you make. Now, if you claim only one on your job paper work, when you do the taxes you claim 3. Then for your tax credits you will have 3 X 1040 for your state and then you will also have more of a credit on your federal.
2007-03-13 11:04:21 · answer #3 · answered by Melanie P 3 · 0⤊ 3⤋
The more you allowances you claim on your W-4, the less amount of taxes will be withheld from your paycheck.
Go to irs.gov and search out Circular E. There you will be able to compare the withholdings of either 1 or 2.
2007-03-13 10:58:53 · answer #4 · answered by bold4bs 4 · 0⤊ 3⤋