Understand Different IRS Filing
Statuses
By
Roni Deutch
The five different filing statuses
recognized by the IRS are as follows.
Single - according to the IRS
your filing status is single if
you are either unmarried or legally
separated from a former spouse on
the last day of the tax year. Therefore
if you were legally single on or
before December 31st, 2007 then
you will need to file as single
on your tax return.
Married Filing Jointly - in order
to be considered married by the
IRS a man and woman must have their
marriage legally recognized by the
federal government. You can choose
to file jointly if you and your
spouse agree to file a joint return.
However, you will include all combined
income, exemptions, and deductions
on your return.
Married Filing Separately - if
you are married you can also chose
to file Married Filing Separately.
However, this status generally has
the highest tax liability and couples
can often save hundreds by choosing
to file a joint return. If you are
unsure if you would be better off
filing separated or jointly then
you may want to speak to a tax professional.
Head of Household - if you qualify
to file as a Head of Household your
tax liability will likely be lower
then filing as Single. However you
must meet certain criteria such
as having a qualifying individual
live in your household for more
than half the year.
Qualifying Widow(er) with Dependent
Child - in order to qualify for
this filing status you must have
a qualifying dependent child for
two years following the year your
spouse died.
Once you are legally married,
you can no longer file as single.
You must file either Married Filing
Jointly, Married Filing Separately,
or Head of Household. Please keep
in mind that there are tax consequences
that arise from being married. If
only one spouse earns a salary then
you actually get a marriage bonus.
However, if both people are wage
earners, then you face the marriage
penalty. This is because when you
file jointly your income is taxed
at your highest marginal rate.
In 2003, Congress attempted to
fix the marriage penalty with an
increase in the standard deduction
for married couples filing jointly.
The amount was increase to $9,700
for the 2004 tax year, then to $10,000
for the 2005 tax year.
Upon getting married, there are
a number of things you will need
to consider for tax purposes. First
of all, one person is probably going
to need to change their address
and/or name with the IRS and Social
Security Administration. To do so
you will need to file form SS-5
with the Social Security Administration
and IRS Form 8822 with the federal
government.
The Tax Lady the
Roni Deutch opened the
Roni Deutch Tax Center to fill
the need in this country for competent
income tax return preparation. For
more help with your taxes check
out her
Tax Help Blog.
Article Source:
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