Filing Statuses for Taxes
When completing your tax forms, it’s essential to choose the appropriate filing status that reflects your personal circumstances. Selecting the correct filing status depends on your marital status, family situation, and financial circumstances as of the last day of the tax year. It’s important to understand each filing status to file accurately and potentially reduce your tax liability.
Single
The IRS defines the Single filing status for individuals who are unmarried. You can also use the Single filing status if you are divorced, legally separated, or widowed as of December 31st of that year. If your marriage is annulled, the IRS treats you as unmarried, even if you filed jointly in prior years. If you qualify for the Single filing status, you may owe less in taxes, depending on your gross income for the year.
Married Filing Jointly
When you’re married and file a joint return, you report both spouses’ total income and claim all eligible deductions and credits on one tax form. You can file jointly even if one spouse had no income or deductions. However, if you were legally divorced by the last day of the year, the IRS considers you unmarried for the entire year, so you’re not allowed to file a joint return for that year. If your spouse passed away during the tax year, the IRS still considers you married for the full year.
Keep in mind that when you file a joint return, both you and your spouse are equally responsible for any taxes owed, including interest and penalties. This means you could be liable if your spouse makes a mistake with the numbers or fails to pay.
Married Filing Separately
If you choose “married filing separately”, both you and your spouse must choose the same method—either itemize deductions or take the standard deduction; you can’t do one of each. If your spouse itemizes, you must itemize as well, even if the standard deduction would benefit you more. You’ll also need to determine how to divide the deductions between you.
Qualifying Surviving Spouse
If your spouse passed away during the tax year and you were eligible to use the “married filing jointly” status before their death (even if you didn’t actually file jointly), you’re allowed to file jointly for that year. For the two years after your spouse’s death, you may be eligible to use the “qualifying surviving spouse” status, as long as you have a dependent child who continues to live in the home.
The qualifying surviving spouse status allows you to file your taxes as though you were married filing jointly, giving you a higher standard deduction and more favorable tax brackets compared to filing as single.
Head of Household
According to the IRS, the “head of household” filing status is intended for unmarried individuals who provide financial support for others. You’re considered unmarried if you’re not legally married or if your spouse did not live in your home during the last six months of the tax year. Filing as “head of household” means you covered more than half the expenses of maintaining a home that was your child’s primary residence. These expenses include property taxes, mortgage interest or rent, utilities, maintenance, property insurance, food, and other essential household costs.
If you need assistance choosing your tax filing status, JTS Associates CPAs is here to help. Contact us at 516-877-5900 to schedule an appointment.
