What is Your Correct Filing Status?

         With filing season approaching very soon, it is important for every Taxpayer to know what their Filing Status is. The Internal Revenue Service (IRS) has five. They can have a strong impact on how much tax is owed, what the Standard Deduction is, or if a return is even needed. The marital status is determined by how things are as of December 31.

          Those who choose Single must be unmarried, divorced, or legally separated. Married filing jointly allows for a joint tax return with a spouse. If one passes away, the one who is widowed can still file jointly for that year. Married filing separately allows for separate tax returns and may result in less tax owed. Head of household can be used by unmarried Taxpayers, but under certain conditions. For example, it must be proven that one paid more than half of the cost of keeping a home for themselves and another individual. Qualifying widow or widower with dependent child is a special case. It only applies to a Taxpayer if their spouse died during one of the previous two years and they have a dependent child. With less than 2 months to go, now is the time to find out which status might apply to you. A Qualified Tax Professional will certainly give clear direction in this area.

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