Based on the 2015 tax rates, an individual is indifferent between filing as a single taxpayer or a head of household if he has $9,225 or less of taxable income.

Question

Quizplus · Accepted Answer

According to the 2015 tax rates, the standard deduction for a single taxpayer is $6,300 and for a head of household it is $9,250. This means that an individual with taxable income of $9,225 or less would have no tax liability as a head of household and would also be entitled to a higher standard deduction, making it advantageous to file as a head of household rather than a single taxpayer. Therefore, the statement is true.

Based on the 2015 Tax Rates, an Individual Is Indifferent