Jul 29, 2021
Tax Filing Status
It is very important to know choose the right filing status options as filing your tax return. Choosing the wrong filing status will have you hold accountable for penalties and more.
Tax Filing Status Options
- Head of the Household
- Married Filing Separately
- Married, Filing Jointly
- Qualified Widow or Widower
Head of the Household
- Individuals that are never been married and are paying at least half of the cost to keep the house and other expenses. They also are at least supporting one person financially.
- Married couples can also use this status if their spouse have not lived together for at least six months, and they are supporting the cost of household expenses. Even though you have a child can still use this filing status if the child is living with you. The cost of keeping up the house could include property rent or insurance, food and other domestic expenses.
- In order to use this status, you must have qualifying person. The qualifying person could be 19–24-year-old if student, who have lived in your house for at least six months. It also could be your parents and living separate from you. Must provide supporting documents that you are providing them.
Married Filing Separately
- You must be legally married to file as married filing separately. Individuals who only wants to be responsible for their taxes can use this. As a couple if you don’t agree to file a married joint return you can use this option. Usually, taxpayer who use this often ended up more taxes then if they would if they file jointly. If you file separately, you can’t deduct followings:
- Student Loan Interest
- Child Tax Credit
- Earned Income tax credit
- Only able to take half the standard deductions
- Itemize can get complicated because you and your spouse both must decide who gets each deduction
Married, Filing Jointly
- Married individuals who choose to fill joint return. This can get you more refund than any other filing status. You can repot your combined earned income and expenses deductions. You can still fill joint return even though you have no earned income. Also, you can file married, filing status even if you don’t have any children.
- Filing joint return will hold you and your partner accountable for any interest and penalties. If you were divorced last year, you can’t use this status. But if your spouse died recently, you could file joint tax return for that tax period.
Qualified Widow or widower
- Individuals who lost their spouse and have children to support at home. This filing status will allow the taxpayer to use the married filing jointly tax rates on their tax return. According to the IRS to be eligible for qualified widow(er) status, the survivor must remain unmarried for at least two years following year of the spouse’s death.
- To file for this status, you must have qualified child living with you. You must be the responsible person to provide at least half of the cost to keep up with household expenses.
Single
- Individuals who are not married and not qualified for any other status. They paid more than half of the cost of keeping up the house and have no dependents. Even though you been divorced you still considered as single. This filing status will not bring you much refund back.
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