DEFINITION of IRS Publication 501
A document published by the Internal Revenue Service that covers tax exemptions and the amount of the standard deduction. IRS Publication 501 also explains who must file a tax return and what filing status should be used, as well as information on dependents and how to account for them when filing a return.
BREAKING DOWN IRS Publication 501
Choosing the correct filing status is an important step in the tax preparation process. The filing status determines whether a tax return should be filed, the rate at which income should be taxed and what standard deduction is permitted. Taxpayers with little or no gross income may not have to file a tax return at all.