Tax Strategies & Credits

Tax Terms: Filing Status

Tax Terms: Filing Status

The term "filing status" refers to your marital status at the end of the tax year. The filing status options available to taxpayers are:

  • Married filing jointly
  • Married filing separately
  • Head of household
  • Single

The first three among these are available to those who are married and the last two are available for those who are single. There is an additional filing status that can be used by those who had been married by have been widowed. The filing status that is selected by a taxpayer can make a significant difference in the taxes that are owed, but understanding which is most beneficial can be complicated, and therefore it is not uncommon for the wrong status to be chosen. Of all of the options, the one that is most frequently underutilized as well as misused is the head of household option. This selection can only be applied in situations where the taxpayer is both unmarried and has assumed responsibility for paying over half of the household expenses. Additionally, that household must be the primary residence for over half of the tax year of a child or qualified dependently. Alternatively, the head of household status can be selected by an unmarried individual who has assumed responsibility for paying over half of the household expenses for a separate household that was the full time primary residence of their dependent parent.

The head of household filing status can be used by a taxpayer who is married but who has been separated from their spouse for a period of at least the last half of the tax year, as long as that person also meets the requirement of having provided a a home for a dependent child for a period of at least six months.

The special status that is accorded to those who have been widowed is called "surviving spouse," or "qualifying widow or widower." It applies when a taxpayer has been widowed within the last two years and is responsible for a dependent child. In this case, the surviving spouse is able to use joint tax rates, although they are not able to claim an exemption for the spouse who has passed. The widowed person is permitted to file a joint tax return in the year that the death occurred as long as by the end of that tax year they have not been married again. It is important that the executor who is responsible for the estate closely examines the various tax ramifications for a surviving spouse, as in some cases it may be more beneficial for the decedent and their surviving spouse to use the tax status "married filing separately" on their tax returns for the year of death.

Contact Atlanta CPA Karen Drescher for more information about determining your own filing status.

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Karen C. Drescher, CPA, CGMA

Karen C. Drescher, CPA, CGMA

Whether it is helping a individual or a Georgia small business with their taxes, or offering to be a backstop through their difficulties, Karen is always there for her clients. When you are a client of Karen's, she always tries to make you feel comfortable in a casual and friendly environment.

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