Different Tax Statuses

The only sure things in life are death and taxes, so the old adage says. Of the two, many would rather meet the first one than comply with the second one. This is because filing tax returns can be such a hassle, not to mention a burden on your finances. When you file tax returns, one of the things that need tax form assistance is your tax status. What status are you going to put on your tax form? You can file as single, married filing jointly, married filing separately, or head of household. This article talks about the first three possible tax statuses.

Filing singly needs no long explanation. You can file as single if you are not married or considered not married for the entire duration of the year. If you have dependents who you can claim as exemptions, you may be qualified to file your tax return as head of household, which can lead to a lower tax. Filing as married is more complicated and needs further explanation. Basically, there are two types of married statuses available for your choosing. You can either file as married filing jointly or married filing separately. If you are married or can be considered married, you and your spouse may both agree on using the married filing jointly status. Compared to married filing separately, married filing jointly is a status that results in a lower tax. You and your spouse can be held responsible (separately or together as a couple) for the tax, as well as any penalty or interest due on your tax return. However, you and your spouse may also agree on using the married filing separately status. By doing so, you each file a separate return and report only your own income, exemptions, credits, and deductions. This usually leads to a higher combined tax.

December 19 2008 11:18 pm | Tax Form Questions

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