If an Unmarried Taxpayer Provides More Than Half the Support

question 22

True/False

If an unmarried taxpayer provides more than half the support for a cousin who lives in the taxpayer's home for the entire year, the taxpayer will qualify for head of household filing status.

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Definitions:

Supply

The total amount of a product or service that is available to consumers.

Elastic

Describes a situation where the demand for a good or service significantly changes in response to a change in price.

Optimal Tax

A taxation principle aiming to maximize economic efficiency without imposing undue burdens or distortions.

Deadweight Loss

Economic efficiency loss occurring when free market equilibrium is not achieved for a good or service.