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What’s new on your 2005 return?

by on
in Employment Law,Human Resources

The IRS tinkers with Form 1040 every year, and this year is no exception. In fact, your 2005 tax return reflects new tax-law definitions and rules, annual inflation adjustments to tax thresholds and various tax breaks for hurricane relief, just to name a few changes. Here’s the skinny on the biggest changes this year on a line-for-line basis.

Form 1040 changes

Head of household (Line 4). A new definition of a “qualifying child” applies to head-of-household status. See the rules for dependency exemptions claimed on Line 6c of Form 1040.

Qualifying widow(er) with dependent child (Line 5). A foster child no longer is a qualifying child for this purpose.

Dependents (Line 6c). You can claim dependency exemptions for those who meet the definition of a “qualifying child” or a “qualifying relative.” To claim a foster child as a qualifying child, he or she must be placed with you by an authorized placement agency or by a court order....(register to read more)

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