I've already had a look at this website here www(dot)bir.gov.ph/taxinfo/tax_income.htm#24020 and it says there:
"...a taxpayer may opt to avail any of the following allowable deductions from gross income..
...individuals who are either earning compensation income, engaged in business or deriving income from the practice of profession are entitled to personal and additional exemptions as follows:
For head of family………… P 50,000.00"
I looked further for the definition of the "Head of the family", and as per this site: www(dot)bir.gov.ph/taxcode/24615.htm it states:
"For purposes of this paragraph, the term 'head of family' means an unmarried or legally separated man or woman with one or both parents, or with one or more brothers or sisters, or with one or more legitimate, recognized natural or legally adopted children living with and dependent upon him for their chief support.."
I think I am qualified.. however I'm not 100% sure, so I'd like to know your thoughts. Here's my case:
-I'm currently 25 y/o
-have been supporting my father financially with the rent and expenses at home since he's just a freelance tailor (sa dami ng ukay ukay ngayon, once in a blue moon na lang may magpatahi na talaga sa kanya ng mga damit )
-my mom passed away waaay back when I was college and I've been helping pay the bills since I started working after graduating from college - right now I am solely paying the bills since my sister got her first baby
-about my elder sister, she used to help with the expenses, but since she's already got a baby, she can't afford to help out with the expenses anymore. I've also told her that I'm planning to declare myself as head of the family and she confirmed that's fine.
-at the moment, I'm planning to rent a room near where I work to avoid the traffic and since mas makkatipid pa ko.
1. Given the above data, will I qualify as the head of the family?
2. If yes, any guide on how would I be able to submit and change my status as head of the family, and how long would this process take?
3. Will my tax bracket be affected in any way? (Like change from S to S1?). If not, what does the amount P 50,000.00 mean for the head of the family?.. ugh, like how will I compute for the deductions for being the head of the family?
Thanks in advance to those who can answer/clarify these for me!
PS. I used www(dot) instead of the usual www . format for the websites above as it looks like the admin has a setting here in this forum that new members cant post links (even government/legit links! )