Q&A of the Week February 16, 2022

Question:

What are the statuses for filing taxes? Why is filing status important?

Answer:

There are 5 tax filing statuses. There are conditions for each, so you will want to be certain that you qualify before choosing a tax status!

1. Single - Taxpayers who are not married, divorced, or legally separated.

2. Married Filing Jointly - Taxpayers who are married.

3. Married Filing Separately - Taxpayers who are married and may benefit from filing separate tax returns.

4. Head of Household - Taxpayers who are not married and have paid at least half of the costs for their home and a qualifying person living in their home for at least half of a year.

5. Qualifying Widow or Widow with a Dependent Child - Taxpayer whose spouse died in 2019 or 2020 and did not remarry before the end of 2021.

Your filing status is important because it determines the following:

- If you are required to file a federal tax return

- If you should file a return to receive a refund

- If you can claim certain tax credits

- The amount of your standard deduction

- The amount of tax you may owe