Know Your Filing Status!


        As we look toward 2020 and the next tax filing season, each Taxpayer must clearly understand what their filing status is. Having this information will help them know what the Standard Deduction will be, whether they will be eligible for certain tax credits, how much tax they should pay, or even if they are required to file a Federal Tax return. This usually depends on whether they are married on December 31 and that will determine their status. However, there can be exceptions.

          Qualifying widow(er) with dependent child. This can be applied if the spouse of a Taxpayer has died within the previous two years and they have a dependent child. There are other conditions that must be considered. Head of household. This can be used by unmarried Taxpayers in certain situations. they must have paid more than half of the cost to maintain a home for themselves and a qualifying person who lived in the home for at least half the year. The rules for this option should be reviewed with a Qualified Tax Professional before being used.

          Married filing separately. Married couples have the option of filing their Tax Returns separately. It may lead to a smaller amount of tax being owed in certain situations. Married filing jointly. Taxpayers can file jointly with their spouse. If one passes away, the widowed spouse may still be able to file a joint return for that year. Single. This is the normal filing status for Taxpayers who are unmarried, divorced, or legally separated.

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