What’s new on your 2005 return? — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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What’s new on your 2005 return?

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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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