If you’ve ever stared down IRS tax brackets trying to figure out where you fit, you’ll notice filing status has an outsized impact on your federal income tax. Your filing status determines not only which tax forms you fill out but also your eligibility for certain tax credits, which tax deductions you can take, and other tax benefits.
Let’s take a close look at the five filing statuses and how they affect your tax liability.
What is a tax filing status?
Your filing status is a collection of household characteristics that determine the rate at which your adjusted gross income (AGI) is taxed. It’s influenced by the following factors:
- Marital status
- Number of dependents or children
- Occupation
- Dependent care expenses
- Income
Choosing the right filing status is crucial because it affects your standard deduction amount, the child tax credit or earned income credit you’re eligible for, and many other tax credits that could significantly lower your taxable income, and ultimately the amount of tax you pay.
The 5 federal tax filing statuses explained
Under federal tax filing requirements, you must choose a filing status for your tax return. Taxpayers choose from five categories, although it’s worth noting you don’t have to meet the filing status qualifications for the entire tax year.
In some cases, your status (marital or otherwise) might fall into the category of “it’s complicated.” For those situations, your filing status relies on whatever your marital status is on the last day of the tax year or calendar year.
Single filer
If one of the following describes your situation, you likely qualify for single status by the IRS.
You’ve never been or are not currently married.
As long as you are not legally married by the last day of the year, the IRS considers you an unmarried taxpayer for the entire year for the purposes of tax preparation
You’re divorced or legally separated.
If your divorce has been finalized or you’ve got a separate maintenance decree and are considered legally separated by Dec. 31, you’re a single filer.
There are a few other scenarios that might qualify you for single status, such as being in a registered domestic partnership or being widowed. The rule of thumb for tax purposes is if you’re unmarried and don’t qualify for any other filing status such as head of household or qualified widow, then you’re single according to Uncle Sam.
Married filing jointly or surviving spouse
If you’re married and doing your taxes together, or if your spouse died during the tax year, this filing status is likely the best fit for your situation. However, married filing jointly status does have some stipulations.
You have to be legally married by the end of the tax year.
Even if you’re in the process of getting a divorce, as long as you are still legally married at the end of the year, you can file jointly.
You have to combine everything on your taxes.
You and your spouse must file a joint return under this filing status, which means combining gross income, unearned income, and sorting through finances together.
Your spouse dies during the tax year.
If your spouse died any time during the tax year for which you are filing, the IRS considers you married for the entire tax year.
When it comes to the government, marriage has its benefits. Married couples filing jointly often earn a larger standard deduction and other tax credits that ultimately give them lower tax liability.
Married filing separately
Couples who are married can still choose to file separately, although they’ll have to get on the same page about whether to take the standard deduction or itemize. There are a few advantages to filing separately, including the following:
You want to keep your finances separate.
This sounds obvious, but some couples have good reasons for keeping their financial lives separate, especially if they have drastically different financial situations. A separate return can mean a smaller tax refund, but bigger peace of mind.
You have significant out-of-pocket medical expenses
For couples with a high combined income, filing separately can enable them to take certain deductions for medical expenses they might not otherwise be eligible for.
Note that if you live in a community property state, it negates most of the tax benefits for couples to file separately. Married filing separately has other significant disadvantages, including the loss of student loan interest deduction and other premium tax breaks.
Filing separately can also reduce your standard deduction, child tax credit, and retirement savings contribution deduction.
According to the IRS, incorrectly claiming a filing status is one of the most common mistakes taxpayers make when filing taxes. Head of household filing status can be particularly tricky because it covers a narrow set of circumstances:
You must be unmarried, but the main provider for a household.
The IRS has very specific rules for what defines a head of the household. You must be a single or unmarried taxpayer who fronts half the costs of support and other household expenses of a qualifying person such as a dependent child.
The qualifying person lived with you for more than half the tax year.
Dependent children generally need to be under the age of 19 (24 if they’re a student) and living with you for a majority of the tax year. The exception to this rule is if the qualifying person is a dependent parent.
The benefit to claiming head of household filing status is that you not only get a lower tax rate and a higher standard deduction, you can also claim certain deductions for your home such as property taxes and mortgage interest.
Qualifying Widow(er)
If your spouse died during the tax year, you can (and should) use married filing jointly status. However, once that first tax year has passed, surviving spouses can continue to claim some tax benefits. Consider qualifying widow or widower status if you meet these requirements.
Your spouse died within the last three tax years.
During the year in which a spouse dies, the survivor can use the married filing jointly status. For the following two tax years after that, taxpayers can use the qualifying widow or widower status.
You have a qualifying dependent child or children.
This filing status is only available to widows or widowers who are still living with and supporting dependent children, although temporary absences such as military service are allowed.
You remain unmarried.
In order to claim this filing status, you’ll need to remain unmarried in the eligible tax years following your spouse’s death.
The benefit to qualifying widow or widower status is that it taxes the surviving spouse as if they were married filing jointly for several years after the death, reducing tax liability and enabling better financial stability for survivors.
How to choose your tax filing status
To choose the correct filing status for your income tax return, start by determining your marital status at the end of the year.
If you’re legally married…
Choosing your filing status depends on your income and potential deductions, but most couples will benefit from declaring married filing jointly status on their tax returns.
If you’re unmarried but you’re supporting a dependent…
Whether you’re a divorced or single parent or a surviving spouse, you may qualify for head of household filing status or the tax benefits of qualifying widow or widower status.
If you’re unmarried or single…
At the end of the tax year if you’re unmarried and can’t claim any dependents, you’re likely to be required to file as a single taxpayer.
Tax filing status frequently asked questions
Can you change your tax filing status at any time?
You can amend your tax return at any time, including to change your filing status. Keep in mind this can alter your tax liability and could result in a bigger tax bill or a refund. However the IRS does set a limit of allowing taxpayers to use Form 1040X to go back no more than three tax years to make adjustments.
How do I know my household filing status?
Your household filing status usually corresponds to your marital status at the end of the tax year, combined with other factors such as whether you have dependents. Still not sure if you’re choosing the correct filing status for your federal tax return? You can use the IRS filing status tool to confirm your filing status, or consult with a tax expert.
