 Here we are in our example form 1040. We're using LASERC tax software to populate it. You don't need tax software to follow along, but if you have access to tax software, it's a great tool to run scenarios with. You can also get access to the form 1040 related schedules, related forms at the IRS website, irs.gov, irs.gov. Our starting points gonna be a single firewaller here. Mr. Anderson, we've got no dependence to start off with on down below, and then we've got our 100,000 at the W-2 income for a nice round number. We've got our standard deduction at the 12,950, and that gives us our taxable income at 87,050. If I jump on over to our tax equation, the 100,000 we're pulling in from the W-2 income, the standard deduction we're gonna pull from our table down below for the single firewaller that gets us to the 87,050. I'm gonna depend on the software to double check the second page, which is the 14774. That's the tax that's being calculated. There's the 14774 I plugged in, and then we had withholdings we're saying of 15,000 to get to the refund of the 226. So then we've got the 226 on down below. So now let's say that there's gonna be a dependent involved. So we're gonna add the dependent. That's our point of focus right now, and it will touch on some things that we've looked at before, some things that we're gonna look at later, including if I go from a dependent at a single status that might move up my filing status, most likely will from single to head of household. That's most likely going to be the case. That'll be one change that will happen. We'll have then the dependent that will be listed down here. The dependent then will either qualify for a child tax credit usually or an other dependence credit usually. And that then will have implications possibly here if there was a change to the filing status and that on page two, we could have a change to the tax tables being applied if there was a change to the filing status. And then we could have a change in the child tax credit that being the big one. And if we were in a low income situation, you could have a significant effect on the earned income credit, which we'll talk about in the future. So therefore we note that there's a lot of different kind of factors involved with regards to taxes and children. And therefore it could be a sticking point in terms of if there's custodial issues and whatnot. And we wanna make sure that we can come up to any kind of agreement as clearly as possible, because as we can see here, when we list the social security number for a dependent, we can't list that on multiple returns, getting the benefits of one dependent generally on multiple returns as the general rule. Okay, given that, let's add the dependent. So I'm just adding it in here into the software just to see the data input on the software. And I'm just gonna say the son for now, these are the relatives that could qualify and that's gonna be here. And then I'm also gonna go back and change the filing status from single to head of household, which will typically be the case, right? So now this should line up. If I go back to the software, we've moved up to the head of household. We've got Mr. Anderson here. And then we've got our dependent listed on down below. And there's the social security number, the relationship, and then whether or not they qualify for the child tax credit. Remember that the general rule when we think about this is, are they a qualifying child? And if they are a qualifying child, do they qualify for the tax credit? Meaning there's gonna be age tests, oftentimes and dependent tests with regards to that. And therefore we would pick up the child tax credit. If they don't, for whatever reason, then can we still get the other dependent credit? If they're not a qualifying child, then the only credit we might be able to get is the other dependent credit. That's the general rule. If I scroll down, you can see here, we did have an impact changing from the standard deduction that was for the single to the head of household standard deduction. That would only happen if you're in that weird situation where the dependent will have an impact on the filing status. So if I reflect that in my software here or in my worksheet, I would then say, now we're moving up to the head of household and that will then take our taxable income to 80,600. So there was the 80,600 here. Page two calculates the tax, which will now be different because the taxable income is different and possibly because the tax tables being used might be different due to the fact that now we're using a different filing status. Now calculated at the 11,855, which I'm gonna type in here, 11,855, depending on the software to calculate that. That's an average rate of the 14.7%.