When the time comes for filing your tax return, make sure you use the right filing status. Your filing status can affect the tax benefits that you qualify for and receive as well as the amount of taxes that you pay and the standard deduction amount you can claim. Your filing status could even have an impact when it comes to establishing whether or not you should file your tax return.
You need to categorize yourself as married, single, or head of household when filing your tax return. Those are the three basic categories. The one that people claim the most by mistake is the Head of Household status.
The following are a few basic points to help you establish the appropriate filing status for you.
· Single Filing Status: If you file your tax return with a single filing status, it means that you are not married, legally separated, or divorced in accordance with the state law.
· Marital Status: Your marital status as at the final day of the year is the same marital status you will use for the whole year.
· Married Filing Jointly: A married couple is allowed to file their tax return together by using this filing status. If your husband/wife passed away during the year you can still file a joint return for that particular year.
· Qualifying Widow(er) with Dependent Child: This filing status applies to you if your husband/wife passed away two years prior to the filing year, and you meet other requirements, including a having a dependent child.
· Head of Household: This filing status basically suits those who are not married and have pay over half the expenses of the household costs, and have a dependent.
· Married Filing Separately: If you are married but decide to file your tax return separately, then your filing status will basically read Married Filing Separately. Doing this makes it so that you are not liable for your spouse’s taxes.
· If you have a choice: If you qualify for more than one filing status, then go for the one that permits you to pay the lowest amount in taxes.
The easiest way to file is via IRS e-file, as this will assist you in establishing the appropriate filing status for you. If you prefer to file a paper return, then you can use the Interactive Tax Assistant on the IRS website. It is a tool that assists you in picking the correct filing status.
The IRS Publication 501 (Exemptions, Standard Deduction and Filing Information) also contains additional information concerning filing status. You can access it on the IRS website, IRS.gov, or by contacting the IRS.
