An individual is indifferent between filing as a single taxpayer or a head of household if he has $8,700 or less of taxable income.

Question

Quizplus · Accepted Answer

This statement is true. An individual would be indifferent between filing as a single taxpayer or a head of household if his taxable income is $8,700 or less. This is because the standard deduction for a single taxpayer in 2021 is $12,550, while the standard deduction for head of household is $18,800. Therefore, if the individual's taxable income is less than or equal to $8,700, he would not benefit from the higher standard deduction of head of household and would be indifferent between the two filing statuses.

An Individual Is Indifferent Between Filing as a Single Taxpayer