Filing Status Change

The head-of-household filing status will soon be eliminated, requiring single parents to file as individuals. By itself, that boosts tax rates for single parents at most income ranges.

Personal and dependent exemptions will get eliminated, raising taxable income for all single parents who do not itemize.

And now tax brackets are going from seven to three.The result: Higher taxes for many heads of household. For example, in 2017, a single parent with one child who claims the standard deduction would face a 25 percent tax rate on adjusted gross income (AGI) between $53,050 and $68,550, compared with just a 15 percent rate under current law.

Time to start itemizing and turn your everyday expenses into deductions! If you haven’t got into a business, time to start reconsidering!!!

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