Heidi filed as a head of household and took the standard deduction this year despite her daughter moving out last year following her graduation from college. The standard deduction for single filers is $12,200, and head of household is $18,350. Assuming a marginal tax rate of 32%, how much is this error worth? (Round to nearest whole number.)

Question

Quizplus · Accepted Answer

The error is worth the difference in deductions multiplied by the tax rate: ($18,350 - $12,200) * 32% = $1,968.

Heidi Filed as a Head of Household and Took the Standard