Number: RS22520
Title: Tax Benefits for Families: Recent Changes for the Head of Household Filing Status
Authors: Christine Scott, Domestic Social Policy Division 
Abstract: The Working Families Tax Relief Act of 2004 (P.L. 108-311) created a more uniform definition of a child for tax purposes, beginning in tax year 2005, by defining a qualified child and qualified relative. As part of these changes, P.L. 108-311 altered several tax provisions used by families, including the requirements for head of household filing status, to reflect the new definitions of a qualified child and qualified relative. During the recent tax filing season (for tax year 2005), some taxpayers who in previous years filed their federal income tax returns as heads of household discovered that they are no longer eligible to do so. Instead they had to file as single taxpayers. There is an advantage to filing as a head of household (instead of filing as a single taxpayer) because the standard deduction is larger and the tax rate schedule is more favorable.
Pages: 6
Date: October 17, 2006