Filing Status (federal Income Tax) - Importance of Choosing Correct Status

Importance of Choosing Correct Status

An individual's tax liability depends upon two variables: the individual's filing status and the taxable income. The status can be determinative of the correct amount of tax, whether one can take certain tax deductions or exemptions that could lower the final tax bill, and even whether one must file a return at all. One must file the status honestly, or it will be considered fraudulent and penalties will be assessed.

As a taxpayer, one must withhold at least 90% of the tax burden for the year and should make sure to withhold enough to avoid penalties.

Read more about this topic:  Filing Status (federal Income Tax)

Famous quotes containing the words importance of, importance, choosing, correct and/or status:

    Society is the stage on which manners are shown; novels are the literature. Novels are the journal or record of manners; and the new importance of these books derives from the fact, that the novelist begins to penetrate the surface, and treat this part of life more worthily.
    Ralph Waldo Emerson (1803–1882)

    The importance of its hat to a form becomes
    More definite. The sweeping brim of the hat
    Makes of the form Most Merciful Capitan,
    If the observer says so....
    Wallace Stevens (1879–1955)

    Although I’ve risen! and my back is bold.
    My tongue is brainy, choosing from among
    Care, rage, surprise, despair, and choosing care.
    I’m semi-splendid within what I’ve defended.
    Gwendolyn Brooks (b. 1917)

    It is easier to criticize than to correct our past errors.
    Titus Livius (Livy)

    His Majesty’s Government view with favour the establishment in Palestine of a national home for the Jewish people, and will use their best endeavours to facilitate the achievement of this object, it being clearly understood that nothing shall be done which may prejudice the civil and religious rights of existing non-Jewish communities in Palestine, or the rights and political status enjoyed by Jews in any other country.
    —A.J. (Arthur James)