Have a Tax Question? Ask a Tax Expert
Dear XXXXX, you might benefit from filing as head of household. This filing status allows you to take a higher standard deduction and generally lower tax rate.
But, due to very small tax liability, filing status might not make a difference at all. For example, your refund would be the same whether you filed HH or single with one dependent if your income was 17K. At 27K, there would be a difference.
You should file taxes at the same time as your fiancee to see which would benefit more by claiming your daughter, presuming that you may both claim her as a dependnet.
Head of household status requires a qualfiying person, in this case your dependent daughter, and you are required to provide more than 1/2 the cost of keeping up a home.
Let me know if you n eed more info.
Wow, you'll have a full house soon!
Keep in mind, once you get married, you will be filing married joint, no longer single or head of household. But for 2007, if you would like to give me your approximate income for the year (before tax, meaning gross), and the amount of federal withholding I can estimate refund. Also, if you want to give me this info for your fiance also--we could do a comparison.