Check out the following new Questions for the Tax Lady answers and feel free to ask me questions through one of the links below. You can send me an email, direct message or @ reply. I will do my best to get an answer for you!
Question #1: Roni, I donated to the Red Cross through my cell phone to support their Haiti relief operations. Can I deduct this donation on my tax return next year?
Yes. All contributions to qualified charities are fully deductible. Just keep a copy of your next cell phone bill as proof of the donation.
For those of you who have not already, text “HAITI” to 90999 to make a $10 donation to the Red Cross.
Question #2: What is the head of household filing status?
In addition to filing as single taxpayer you can also file your tax return as “head of household.” Typically, if you qualify then your tax rate will be lower and you will be able to receive a higher standard deduction. However, in order to qualify you must meet the following IRS requirements, for more information check out IRS Publication 501.
1. You are unmarried or “considered unmarried” on the last day of the year.
2. You paid more than half the cost of keeping up a home for the year.
3. A “qualifying person” lived with you in the home for more than half the year (except for temporary absences, such as school). However, if the “qualifying person” is your dependent parent, he or she does not have to live with you. See Special rule for parent, later, under Qualifying Person.