This article is up to date and accounts for tax law changes for tax year 2022 (tax returns filed in 2023).
Doing your taxes involves more than just crunching numbers. It requires you to classify yourself based on your circumstances: your income, if you’re married, if you have kids, etc. These sound like easy questions to answer, but sometimes the situation is more complicated. Get the facts and find out which filing status best suits your tax circumstances.
What is a filing status?
Your filing status is a classification that determines how you file your tax return. There are five statuses: Single, Married Filing Jointly, Married Filing Separately, Head of Household, and Qualifying Widow(er) with a Dependent Child. Each status has its own set of rules and tax implications, so choosing the one that best fits your situation is important. The filing status you select will impact the following:
- If you are required to file a federal tax return
- If you should file a return to receive a refund
- Your standard deduction amount
- If you can claim certain credits
- The amount of tax you should pay
There are instances where you may qualify for more than one filing status. If that’s the case, you can choose the filing status that is most advantageous for your tax return.
For example, if you’re single or legally separated, you’d likely go with the Single status. On the other hand, as a married taxpayer, you have the option of choosing Married Filing Jointly or Married Filing Separately. If you’re married and want to combine your incomes, Married Filing Jointly might be the way to go. Depending on your spouse’s financial obligations, you may find Married Filing Separately to be more beneficial.
One example of when Married Filing Separately might be more beneficial than Married Filing Jointly is when one spouse has a significant amount of deductions or credits that are limited by their income. By filing separately, that spouse’s lower income may allow them to take full advantage of those deductions or credits, potentially resulting in a lower overall tax liability compared to filing jointly.
Remember, picking the right filing status can affect your tax deductions and credits, so it’s worth understanding your options to make the most of your tax return.
Note: Your qualification at the end of the year determines your status for the entire year. So, if you were married on Dec. 31st, you would file as Married Filing Jointly or Married Filing Separately for the whole year.
Single
If you’re not married, legally separated, or considered unmarried according to IRS guidelines, this is the category for you. It’s straightforward and applies to many taxpayers. When you file as Single, you’ll handle your tax responsibilities individually. Although you might miss out on some tax benefits that married couples enjoy, plenty of deductions and credits are available to help you maximize your refund or reduce what you owe.
Those filing as Single will get the standard deduction of $12,950.
Typically, you will use this filing status if:
- You are in high school or college and are not married
- You live alone, with roommates, or a significant other and are not married
- You live with your parents and are their dependent
Head of Household (HoH)
If you’re supporting a family or maintaining a household, filing as Head of Household could offer you some extra tax benefits. This status is ideal for individuals who are single, unmarried, or considered unmarried but provide a home for a qualifying person, such as a child or dependent.
If you file as Head of Household, you will get a standard deduction of $19,400.
To qualify for the Head of Household filing status, you need to meet a few key criteria:
- You must be unmarried or considered unmarried on the last day of the tax year. This means you’re not living with your spouse for the last six months of the year, and you’re not filing a joint return with them.
- You must have paid more than half the cost of maintaining a home. These expenses typically include things like rent or mortgage payments, property taxes, utilities (electricity, water, gas, etc.), home repairs and maintenance, and other necessary living costs. Medical expenses, education expenses, and personal expenses like clothing or vacations do not qualify as expenses for maintaining a home.
- You must have a qualifying child or dependent. A qualifying person could be your child, stepchild, foster child, or other eligible dependent. The qualifying person must have lived with you in the same home for more than half of the tax year, except for temporary absences, such as school or medical care.
When you file as Head of Household, you may enjoy lower tax rates and a higher standard deduction compared to the Single filing status. This is one way the tax system recognizes the financial implications of shouldering the responsibility of running a household. If you’re a parent or a guardian with dependents to care for, explore the Head of Household filing status to get the most out of your tax return.
Married Filing Jointly
If you and your spouse are legally married, this could be the perfect filing option for you and your partner. When you choose to file jointly, you and your spouse combine your income and deductions on a single tax return. If you get married before the last day of the calendar year, the IRS considers you married for the entire year for tax purposes.
Filing as Married Filing Jointly will allow you a larger standard deduction of $25,900.
This filing status offers several tax advantages:
- Save time when filing
- Lower tax rate
- Higher standard deduction
- Access to more generous tax breaks like Earned Income Tax Credit (EITC), Child and Dependent Care Tax Credit, and Education Credits
- Tax-free exclusion, typically of US bond interest and Social Security benefits
- Deduction of certain retirement plan contributions
Married Filing Separately
For married filing separately, each spouse files their own tax return. You might want to do this for several reasons, including if you are separated but not legally divorced from your spouse or if one of you has a more complicated tax situation. It might be a good option if you and your spouse want to maintain individual financial responsibilities or have concerns about sharing tax liabilities. As with married filing jointly, it doesn’t matter whether you were married in January or the last day of December. For tax purposes, if you are legally married to your spouse on Dec. 31st, you are considered married for the entire year.
However, like anything in life, there are pros and cons. One advantage is that you’re not jointly responsible for your spouse’s tax liabilities, which can offer protection if one of you has significant deductions or credits. On the flip side, there are some disadvantages. You might miss out on certain tax benefits that come with filing jointly, like a higher standard deduction, and some credits and deductions may be limited.
Read more about filing separately here.
Can I choose my filing status?
If more than one category applies to you, such as married filing separately and married filing jointly, you can choose whichever one results in the lowest tax liability. If only one status applies to you, such as single, you must use that filing status.
Qualifying widow(er) with dependent child
If your spouse recently passed away and you have a dependent child, you can file as a widow(er). This allows you to keep the benefits of married filing jointly for two years after your spouse’s death.
Am I a dependent?
If you are under the age of 24, are not married, have no children, are a full-time student, and your parents provide you with financial help that is greater than half of your annual income, you are most likely a dependent. Your parents can claim you on their tax return, and you must also report that you are their dependent on your return.
For more info about who can be claimed as a dependent, read this article from our knowledgebase.
