An individual’s filing status decides which tax rates and which standard deduction amounts are relevant to a definite tax return. A person’s marital status as on the last day of the year is very imperative in deciding the filing status. If you are married on the last day of the year, you are considered married for tax purpose for that year and if you are not married on the last day of the year, you are considered as single for tax purposes for that year.
Below are the different types filing status:
The single filing status is used by individuals who are unmarried on the last day of the year. Single filers who can allege a dependent may be qualified for the Head of Household filing status, which will give more tax reimbursement.
If you are unmarried and have been looking after a dependent for a time period of six months or more, you may be suitable for the Head of Household filing status (HOH). This filing status gives you an advantage from a higher standard deduction and lower tax rates than those who are just “single” filers. The norms are however severe, as only certain types of closely-related dependents will eligible a taxpayer for HOH status. Moreover, under several situations, a married person with a dependent might be eligible for HOH if he or she has been living at a distance from his or her spouse for the last six months of the year or more.
Qualifying Widow/Widower with Dependent Child Filing Status
If after the death of your spouse, you are still unmarried and have a dependent child in the initial year of death, then you can file under the Qualifying Widow/Widower (QW) filing status. This will permit you to get advantage from the same standard deduction and the same tax rates as for married couples filing jointly. You can claim QW filing status for two years in total. If you are still unmarried after those two years, your filing status will change to single or head of household.
Married couples can file jointly. A joint tax return merges the incomes and deductions of each spouse. Married couples filing jointly get more tax benefits than filing separately.
Married couples filing separately have the least advantageous tax treatment. Those filing separately can get separate tax liabilities, which is a profit not to be ignored. Married taxpayers should cautiously think about their financial condition and then decide whether to file jointly or separately.
IRS Tax Forms 2019
. Some good reasons for filing separately include:
As a final point, spouses filing separately must both take the standard deduction or must both enumerate their deductions. Married couples who choose to file separately are not eligible for quite a few tax profit and tax credit.