U.S. TAX GUIDE IN THE UAE
What does it mean to have a head of household filing status?
Head of household is a tax filing status offering better tax rates and higher standard deductions compared to single or married filing separately. To qualify, you must provide over 50% of the financial support for a dependent or qualifying child during the tax year.
Who qualifies as a dependent or qualifying child?
- Dependents: This can include children or even parents, depending on the situation.
- Qualifying Children: Typically, this refers to a child under 19 (or 24 if a full-time student) living with you for more than half the year.
What are some examples of head of household eligibility?
- Single Parent with a Dependent Child: A single taxpayer supporting a dependent child more than 50% can claim head of household status.
- Married to a Non-Resident Alien: US citizens in the UAE or elsewhere, married to non-resident aliens, can claim this status if they have a dependent or qualifying child and provide over 50% of their support.
Are there any key points I should remember?
- Tax Benefits: Head-of-household status can result in lower tax rates and a higher standard deduction.
- Support Requirement: You must provide over half of the financial support for a dependent or qualifying child.
- Varied Situations: Each case is unique, so consult a tax professional to determine if you meet the criteria
