When it comes to doing your taxes, calculating numbers is not the only thing that matters. Before filing, you have to determine your filing status. A filing status shows the Internal Revenue Service and state tax departments what your living characteristic is. There are five statuses a taxpayer can file under. These five filing statuses are Single, Married Filing Jointly, Married Filing Separately, Head of Household, and Qualifying Widow(er).
You meet all requirements for the Single status on the off chance that you are not hitched, separated, or legitimately divorced from a spouse. You will get the standard finding of $12,000. You would utilize this documenting status on the off chance that you are in secondary school or school and are not hitched, you live alone and are not hitched, or potentially you live with your folks and are their dependent.
To utilize the Head of Household filing status and get the standard deduction of $18,000, you should pay for the greater part of your family unit costs (in most cases, you would have to be paying more than 50 percent of the household expenses), be unmarried for that year, and have a passing reliant or youngster.
For whatever length of time that you and your companion are lawfully wedded, you can fit the bill for this status. In the event that you get hitched before the most recent day of the schedule year, you are viewed as married for the whole year for expense purposes. You get a bigger standard deduction of $24,000 on the off chance that you document together.
You could meet all requirements for this recording status in the event that you are legitimately hitched to your companion. Similarly, as with wedded recording together, it doesn’t make a difference whether you were hitched in January or the most recent day of December. For expense purposes, you are viewed as wedded for the whole year. On account of wedded documenting independently, every life partner records their very own expense form. There are a few reasons you should need to do this, including on the off chance that you are isolated yet not lawfully separated from your life partner.
In the event that your life partner as of late passed away and you have a reliant kid or two, you can put yourself down as a Widow(er). This filing status allows you to reap the benefits of filing as Married Filing Jointly for the next couple years after the death of your husband or wife.
There are some cases in which you as the taxpayer can choose how you would like to file as when doing your taxes. Although it is not always guaranteed that the Internal Revenue Service will allow to utilize certain statuses that you choose unless you can provide the necessary documentation and proof. For example, an elderly taxpayer may decide to claim his elderly sister as a dependent assuming she is disabled and can’t take care of herself alone. In that case, the elderly taxpayer could choose to file as a Head of Household. If the IRS doesn’t have any proof that said taxpayer has paid more than half his household expenses and/or is actually married, the IRS will disallow that taxpayer to claim his disabled sister and label him as filing Single. This would result in an automatic loss of any possible tax refund or balance due.
(Blog Credit: TaxSlayer)