The issue of filing status is a very important one when it comes to a tax return. It is important to choose the correct (per the rules) filing status because it affects how much you pay in taxes. It may even affect whether you need to file a tax return or not.
I have seen client situations that involves the choosing of incorrect (per the rules) filing statuses for years, and -- most often -- the client believes he / she has chosen correctly, or actually they were not aware of the rules which dictate their choice/s. I have seen client situation in which the client did not realize that his marital status on December 31st was his status for the whole year.
Here is a list of the five filing statuses to help you choose:
1. Single. This status normally applies if you aren’t married or are divorced or legally separated under state law.
2. Married Filing Jointly.
A married couple can file one tax return together. If your spouse died
in 2013, you usually can still file a joint return for that year.
3. Married Filing Separately.
A married couple can choose to file two separate tax returns instead of
one joint return. This status may be to your benefit if it results in
less tax. You can also use it if you want to be responsible only for
your own tax.
4. Head of Household.
This status normally applies if you are not married. You also must have
paid more than half the cost of keeping up a home for yourself and a
qualifying person. Some people choose this status by mistake. Be sure to
check all the rules before you file.
5. Qualifying Widow(er) with Dependent Child.
If your spouse died during 2011 or 2012 and you have a dependent child,
this status may apply. Certain other conditions also apply.
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