Explain the Difference Between a Need and a Want, Giving

question 42

Essay

Explain the difference between a need and a want, giving an example of each.

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Definitions:

Dependent

An individual, typically a child or family member, who relies on another for financial support and qualifies for certain tax benefits.

Earned Income

Income generated from active employment and work, including wages, salaries, tips, and other compensation.

Qualifying Widow(er)

A tax filing status allowing a surviving spouse with a dependent child to use married filing jointly tax rates for up to two years after the year of their spouse's death.

Dependent Child

A child who relies on a guardian for financial support and meets certain IRS requirements for tax purposes.