Head of Household Qualifications 2022
Head of Household Qualifications 2022 hello this is Christina with making set solutions I've had a lot of people ask me how do I fill out my w-4 effective January 1st 2020 the 2017 tax reform came, into place and now they are enforcing the W force that will basically take away your personal exemptions and the reason the, IRS is doing this is because they're trying to bring the refunds and the amounts owed to a, net zero so and this is required the required form for.
Anyone that is hired in 2020 it is not required for existing employees to update as yet so I will just be going through a scenario here and I'm going to make a couple of videos for different, scenarios that employees are running into and they need help with so this is. My first one and let's start off here uh we have an. Employee her name is Mary Jones and I've started filling out the form here for her so at the top here is all your personal information your name, address state city all that stuff your social security. Number next in in the C box here you will choose how you will file your tax return, now Mary is filing a head of household that you check had a household if you were unmarried and pay more than half the costs of keeping up a home for, yourself and a qualifying individual mary has two children and she is unmarried so she is filing a head of household that will be how she files her,. Tax return okay next we have steps two through four only if they apply to you otherwise skip to step five, see page two for more information okay step two multiple jobs or spouse works so mary is not married so she does not have a spouse multiple jobs Mary only works one, job so complete this step if you hold more than one job at. A time or are married filing jointly okay she will not complete this step so let's go down to step three complete steps 3 through four be on Form, w-4 for only one of these jobs which she only has one job leave those steps blank for other jobs ok alright so step, three claim dependents okay she has dependents if your income will be two hundred thousand dollars or less, four hundred thousand dollars or less if married filing jointly multiply the number of qualifying children under age. Seventeen by two thousand okay let's go down to the explanation of these steps we want to make sure that she can, claim these dependents step three so let's go down to the next, page to the instructions and here's the steps let's look for step three, here step three of form w-4 provides instructions for determining the amount of child tax credit and a credit for other dependents that you may, be able to claim when you file your touch turn to claim for the child tax credit the child must be under age, 17 as of December 31st of 2020 of the year of this year so must be your dependent who generally lives with you for more than half a year they, must stay with you for at least half. A year and must have a Social Security number okay you may be able to claim a credit for other dependents for whom a child tax credit can't be claimed such. As an older child or a qualifying relative for for additional eligibility requirements see publication nine seventy-two, so just go to the IRS website irs.gov type in publication 972 and that will give you more information for that, so her two children are both under the age of seventeen as of this year so she can she can claim her, children let's say you fill this out this year but next year your child will this does not, apply you will need to change your w-4 because, you don't want to pay too little of withholdings because you don't want to owe taxes so if, if this ever changes in the future or when this changes in the future she will need to go and revise her w-4 so let's go back up here, and multiply the number of qualifying children under. The age of seventeen by two thousand so she has two so she will file she will type in four thousand okay multiply the number of, other dependents okay she does not have other dependents so we'll leave that zero and add the, amounts here's of four thousand okay step form additional other adjustments other income not included from, jobs if you want tax withheld for any other income you expect this year that won't have withholding enter the amount of income here and that is as an interest dividends or retirement income George about, their deductions if you expect to claim deductions rather than using the, standard deduction okay let's go down to page three and look what the standard deductions are.
For 2020 okay deductions worksheet here you go these are the standard deductions head of household 18650 what counts as standard deductions home mortgage interest only the interest charitable, contributions you're going if you plan on making a lot of contributions to qualifying qualifying charities they have to qualified by.
IRS standard you can't help just help out general families in need it has to be two qualifying charities state and. Local taxes and medical expenses now your medical expenses are a percentage, of your adjusted gross income and you would have to have really high bills to. Qualify any medical expenses because this amount they've raised the standard deduction is quite a bit over the last couple of years and this amounts pretty high so most people use the standard deductions so she will use, the standard deduction so let's.
Go back up here she will not itemize so okay so she would she would not be used put anything there so extra withholding if for some reason let's say the last couple of, years you've ended up paying a lot in taxes like maybe they, they just weren't you want calculating things right or let's say you're expecting a big race in the soon. With this job and you may want to take out a little, bit extra you could put an extra withholding there that may be something that you want to talk to you could talk to.
Us about or talk to your CPA about and that's it for her that's all she has to fill out she's not doing any extra withholding. So she would just sign it and data and return it to her employer so I'm going to do more videos on, definitely a singled and filing jointly so just check out my other videos and for making sense solutions and if you have any, questions be sure to leave a comment and I will I'll get back with.