Question

If an unmarried taxpayer paid more than half the cost of keeping a home which is the principal place of residence of a nephew, who is not her dependent, she may use the head of household filing status. A. True B. False

Answer 1

Answer: FALSE

Explanation: In computing an individual's taxable income,the filing status is of major importance. The filing status is of five different categories which includes

(1) single individual,

(2) married person filing jointly or surviving spouse,

(3) married person filing separately, (4) head of household

(5) qualifying widow or widower with dependent children.

A tax payer can qualify for more than one category or status,the tax payer is at will to subscribe to any category that he or she finds convenient.

A PERSON WHO IS NOT A REGISTERED DEPENDENT OF THE HEAD OF HOUSEHOLD CAN NOT UTILISE THE HEAD OF HOUSEHOLD FILING STATUS.