How a taxpayer’s filing status affects their tax return.
The filing status of a taxpayer informs the IRS about them and their tax situation. This is only one of the reasons why taxpayers should become familiar with each choice and understand their correct filing status. They can use the IRS Interactive Tax Assistant to figure out their filing status.
In some cases, more than one filing status may be applicable. If this is the case, taxpayers can usually select the filing status that will result in the least amount of tax owed.
The filing status determines the following while preparing and filing a tax return:
If the taxpayer is required to file a federal tax return
If they should file a return to receive a refund
Their standard deduction amount
If they can claim certain tax credits
The amount of tax they owe
Here are the five filing statuses:
Single. This status is usually reserved for taxpayers who are single, divorced, or legally separated under a state-mandated divorce or separate maintenance decree.
Married filing jointly. A taxpayer can submit a joint tax return with their spouse if they are married. Provided one spouse passes away in 2021, the surviving spouse can utilize married filing jointly as their filing status if they otherwise qualify.
Married filing separately. Separate tax returns are an option for married couples. This may be advantageous to taxpayers who prefer to be solely responsible for their own taxes or who pay less tax than if they file a combined return.
Head of household. Unmarried taxpayers may be eligible to use this status, although there are some restrictions. For instance, the taxpayer must have paid more than half of the expense of maintaining a residence for themselves and a qualifying person for half of the year.
Qualifying widow or widower with dependent child. If a taxpayer's spouse dies in 2019 or 2020 and they didn't remarry before the end of 2021 and have a dependent child, they may be eligible for this status. Other terms and conditions apply.