- by admin
- November 30, 2022
You may have choices when determining your filing status than just one being selected as married or single.
A taxpayer may be eligible for more than one filing status. As you prepare for the forthcoming tax filing season, a taxpayer should review his/her options to select the filing status that is the most applicable to them. If you are only eligible for one filing status, you should make sure and review your filing status after marriage or divorce.
Selecting the right filing status is important as it affects:
- Whether the taxpayer is required to file a tax return – federal and or state
- Which type of return form do you need to use and report
- Do you need to file a return to receive a refund
- Can you claim certain credits
- What is your standard deduction amount
- Your federal and state income tax liability
The taxpayer may be eligible for more than one status, and selecting the right filing status will help you and let you know the one that will result in the lowest amount of tax.
There are five filing statuses, and you need to select only one of them:
- Single. If you are unmarried, divorced, or legally separated under a divorce or separate maintenance decree governed by state law, you can select a “Single” status on your tax return.
- Married filing jointly. A married couple can file a joint income tax return with their spouse. If one of the spouses passes away, the widowed spouse can generally file a joint return for that year.
- Married filing separately. If you are a married couple, you can file your return separately and select the status “Married filing separately.” If you are selecting this option on your tax return, a single spouse may have less tax owed than filing a joint tax return.
- Head of household. If you are an unmarried taxpayer and must have paid more than half the cost of keeping up a home for yourself and your qualifying person living in the house for half the year, you may be able to file as head of household, but special rules apply.
- Qualifying widow(er) with dependent child. The taxpayer can select this status of filing if their spouse died during one of the previous two years and they have a dependent child. There are also other conditions that apply. What Is My Filing Status? If you are unsure about your filing status, you can answer the following questions to determine the same
- What was your marital status on the last day of the tax year?
- If you were single, unmarried, or legally separated, did you pay more than half the cost of keeping up a home in which you live?
- If you were single, unmarried, or legally separated, did you live with your child or a qualifying dependent, and you supported them financially?
- Are you married and intend to file a joint return?
- Are you married, and do you and your spouse intend to file a separate return?
- If you are married and elected to file separately, did you pay more than half the cost of keeping up a home in which you live?
- If you are married and elected to file separately, did you live with your child or a qualifying dependent, and you supported them financially?
- Are you Widowed and your spouse died in the tax year?
- Are you Widowed and your spouse died before the tax year?
You can also use the IRS tool What Is My Filing Status? tool to find out your filing status.
If you are a non-resident alien and not a U.S. citizen or resident alien, different criteria may apply in selecting your filing status in the United States.
RKB Accounting has expertise in cross-border taxation and has been providing accounting and taxation services for the last fifteen years in Canada and USA. RKB services include incorporating a business on both sides of the border, bookkeeping, sales tax, payroll, and corporate and personal income tax. RKB’s expertise includes cross-border tax planning, long-term tax planning, helping business start-ups, business structure planning, and resolving complex tax matters.
Disclaimer: Information in the blog/post/article has been presented for a broad and simple understanding. This is not legal advice. RKB Accounting & Tax Services does not accept any liability for its application in any real situations. You need to contact your accountant or us for further information.
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