Tax Benefits for Families: Recent Changes for the Head of Household Filing Status (CRS Report for Congress)
| Release Date |
Oct. 17, 2006 |
| Report Number |
RS22520 |
| Report Type |
Report |
| Authors |
Christine Scott, Domestic Social Policy Division |
| Source Agency |
Congressional Research Service |
Summary:
The Working Families Tax Relief Act of 2004 (P.L. 108-311) created a moreuniform definition of a child for tax purposes, beginning in tax year 2005, by defininga qualified child and qualified relative. As part of these changes, P.L. 108-311 alteredseveral tax provisions used by families, including the requirements for head ofhousehold filing status, to reflect the new definitions of a qualified child and qualifiedrelative.During the recent tax filing season (for tax year 2005), some taxpayers who inprevious years filed their federal income tax returns as heads of household discoveredthat they are no longer eligible to do so. Instead they had to file as single taxpayers.There is an advantage to filing as a head of household (instead of filing as a singletaxpayer) because the standard deduction is larger and the tax rate schedule is morefavorable.
