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Standard deduction question...?
As a divorced male with a 17-year old son under my care, I assume I can claim HOH. That comes with a standard deduction of $18,650. Do I also get to claim the $2,000 tax credit? If so, my taxable income would be my GROSS less 20,650? Right?
Also, do I reduce my GROSS by the amount of money I contributed to my 403(b) or does the standard deduction eliminate that?
5 Answers
- Anonymous5 months ago
I assume my relationship isn't the only one doomed then? :-)
- JudyLv 76 months ago
yes HOH,, no for 2K credit. and a credit subtracts from your tax not your income.
- EvaLv 76 months ago
The year your son turns 17, he is no longer eligible for the child tax credit. Deductions are subtractions from income. Credits are dollar for dollar reductions in tax. Your contributions to your 403b are already accounted for in Box 1 of your W2. You don't get to subtract it a second time.
- SlickterpLv 76 months ago
Tax credits come off of tax owed directly, not off your income. But yes, you can file HoH
- CarVolunteerLv 66 months ago
No to # 1. It is better than that. You do not deduct the tax credit from your income. You calculate the tax, then deduct the tax credit from the tax. If you are in the 15% tax bracket, your idea would save you 15% of $2,000, or $300. Actually, you save $2,000 if your tax bill gets that big.
No to #2. A 403(b) works like a 401(k). You get a W-2 and the W-2 shows taxable income with the 403(b) contribution already deducted.
