Filing status is an important factor as this determines which tax bracket you fits in and how overall taxation process will progress. The taxes New York city has to pay may vary according to the tax filing status.
Tax filing status depends on :
There are five Tax filing status
If someone is unmarried , divorced or legally separated according to state law on December 31st that person must file as a single person for that year.
2)Married filing jointly
This applies to a person’s marital status on 31st December . If you are married and file a joint tax return than your tax may be reduced .For filing a joint tax return, both spouses must report their income , deductions and credits . This is an example of one convenient way New York Taxes can be paid.
3)Married filing separately
Tax filing Ozone Park separately creates a different situation for both people filing for tax. There could different tax brackets for tax filing separately .This sort of tax filing ozone park provides few benefits and is suitable only in such situation if each individual wants to be responsible for their tax filing. This type of tax filing Ozone Park is less beneficial , when doing so you cannot claim for these
a.Tuition and fees deduction
b.Student loan interest deduction
c.Tax free exclusion of US bond interest
d.Tax free exclusion of social security benefits
e.Credit for elderly and disabled
f.Child and dependent care credit
g.Earned income credit
h.Hope or lifetime learning educational credits
4)Head of household
If you are unmarried and pay more than half the maintenance cost for oneself and some a dependent. Filing as a head of household has many benefits rather than filing as a single status. New York Taxes can get tricky when you qualify for more than one Tax bracket.
5)Quality widow or widower with dependent child
If the tax payer’s spouse has died during last two preceding