Duluth/Gwinnett CPA Gives Seven Facts on Determining Your Correct Filing Status
One of the first steps you take while filing your federal tax return should be determining your filing status. There are five available filing statuses: Single, Married Filing Jointly, Married Filing Separately, Head of Household and Qualifying Widow with Dependent Child. The status you file under is used to determine your filing requirements, standard deduction, eligibility for certain credits and deductions, and your correct tax.
7 Facts on Determining Your Correct Filing Status
Some people may be able to qualify for more than one filing status. Below are the seven facts the IRS has provided to help you choose your option:
1. Your marital status on the last day of the year defines your marital status for the entire year
2. If you can apply more than one filing status to yourself then choose the one with the lowest tax obligation for the year.
3. Single status applies to anyone who is considered unmarried, divorced or legally separated by state law.
4. Married couples are able to file joint returns together. This is Married Filing Jointly.
5. If your spouse died within the year and you refrained from remarrying in the year you may still file a joint return with that spouse for the year of the death.
6. Married couples can also file separately. Both people would take the status of Married Filing Separately. This tax bracket is the highest tax bracket the IRS has. If one spouse itemizes the other spouse is required by tax law to do so as well.
7. Head of Household status is usually considered with the taxpayers who are unmarried. To obtain this status you must pay for over half the cost of maintaining your home for a dependent who lives with you over half the year.
As an Atlanta CPA for decades I have learned that he filing status is one of the most important issues affecting the tax liability of your return, for more information see http://www.hiscpa.com/personal-returns.html