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 can also file as head of household, if you pay for over ½ the cost of providing a parent a home. Parents 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 benefits possible. Call the Ketel Thorstenson Tax Team with any questions, 605-342-5630.
Ketel Thorstenson, LLP, has over 60 CPA’s on staff and has been serving clients across the region since 1936. With offices in Rapid City, Spearfish, Custer, SD, and Gillette, WY, the firm offers a variety of services including tax planning and return preparation, audit services, QuickBooks, bookkeeping, payroll, business valuation and estate planning.