What impact does a taxpayer's filing status have on their tax return?

 

The filing status of a taxpayer informs the IRS about them and their tax position. This is only one of the reasons why taxpayers should get acquainted with each choice and understand their right filing status. They may use the IRS Interactive Tax Assistant to figure out their filing status.

The filing status of a taxpayer is usually determined by whether they are single or married on December 31, which defines their filing status for the full year.

In certain cases, more than one filing status may be applicable. If this is the case, taxpayers may typically choose the filing status that would result in the least amount of tax owed.

The filing status influences the following while preparing and submitting a tax return:

·       If a federal tax return is necessary, the taxpayer must submit it.

·       If they need to file a tax return in order to get a refund

·       The amount of their standard deduction

·       Whether or whether they are eligible for certain tax credits

·       The amount of money they owe in taxes

 

The five filing statuses are as follows:

Single. This status is usually reserved for taxpayers who are single, divorced, or legally separated under a state-mandated divorce or separate maintenance judgment.

Married couples must file jointly. A taxpayer may submit a joint tax return with their spouse if they are married. Provided one spouse passes away in 2021, the remaining spouse may utilize married filing jointly as their filing status if they otherwise qualify.

Separate filing for married couples. Separate tax returns are an option for married couples. This may be advantageous to taxpayers who choose to be solely responsible for their own taxes or who pay less tax than if they file a combined return.

Head of the family. Unmarried taxpayers may be eligible to use this status, although there are certain restrictions. For instance, the taxpayer must have paid more than half of the expense of maintaining a residence for themselves and a qualified person for half of the year.

What is a dependent on taxes? A dependent child, a widow or widower qualifies. If a taxpayer's spouse dies in 2019 or 2020 and they didn't remarry by the end of 2021 and had a dependent child, they may be eligible for this status. Other terms and restrictions apply.