Tuesday, January 27, 2009

Do You Qualify For Head Of Household When Filing Your Tax Returns?

To qualify for head of household status, you must pay more than half of the cost of keeping up a home for the year. You can determine whether you paid more than half of the cost of keeping up a home by using the following worksheet.

Cost of Keeping Up a Home :Property taxes Morgage interest expenseRentUtility chargesUpkeep and repairsProperty insuranceFood consumed on the premisesOther household expensesIf the total amount you paid is more than the amount others paid, you meet the requirement of paying more than half the cost of keeping up the home. Costs you include: the cost of upkeep expenses such as rent, mortgage interest, real estate taxes, insurance on the home, repairs, utilities, and food eaten in the home.

Costs you do not include: the cost of upkeep expenses such as clothing, education, medical treatment, vacations, life insurance, or transportation. Also, do not include the rental value of a home you own or the value of your services or those of a member of your household.There are so many nuances that the average taxpayers negates to include when preparing tax returns. Before you cost yourself money, contact a licensed tax preparer to help prepare your returns.

1 comment:

Anonymous said...

Dealing with the IRS, and taxes in general, can be very tricky.
I know I have had many times where I could have saved some money if I knew what I was doing. I decided to try and save some money next time and got professional irs tax help. I made the right decision. With the help of professionals, I negotiated a compromise with the IRS and ended up paying less money.