Understanding Your Tax Filing Status: A Key Factor in Your Tax Return
Your filing status plays a crucial role in your tax return—it determines which tax forms you need, the size of your standard deduction, your eligibility for tax credits, and how much tax you owe. In some cases, it even affects whether you need to file a federal tax return at all.
What Is Your Filing Status?
Single or married? Kids or no kids? These factors determine the correct filing status for your income tax return. The IRS recognizes five filing statuses:
- Single – Applies if you are unmarried, divorced, or legally separated according to state law.
- Married Filing Jointly – Married couples can file together under this status. If your spouse passed away during the tax year, you may still qualify for a joint return.
- Married Filing Separately – Couples can choose to file separately, often for specific tax benefits or liabilities.
- Head of Household – If you are unmarried and pay more than half the cost of maintaining a home for yourself and a qualifying dependent, you may qualify.
- Qualifying Widow(er) with Dependent Child – If your spouse passed away within the last two tax years, you haven’t remarried, and you have a dependent child, this status may apply.
Choosing the Best Filing Status
Sometimes, more than one status may apply. Working with an experienced tax professional can help you determine which option maximizes deductions and minimizes your tax liability.
Key Reminder: Your marital status on December 31 determines your status for the entire tax year. For example, if your divorce isn’t final by December 31, the IRS still considers you married for that tax year. If you have questions about your filing status, contact us today!