Lesson 4: Determining Your Filing Status

Welcome to Lesson 4 of our series on Filing Status and Requirements. In this lesson, we will explore how to determine your filing status for federal income tax purposes.

What is Filing Status?

Your filing status determines the tax rates you will pay and the standard deduction you can claim on your federal income tax return. There are five main filing statuses:

• Single
• Married Filing Jointly
• Married Filing Separately
• Head of Household
• Qualifying Widow(er) with Dependent Child

Single

You can file as single if you are unmarried or legally separated on the last day of the tax year. This status typically applies to those who do not qualify for any other filing status.

Married Filing Jointly

Married couples can choose to file a joint return. This status generally offers the most benefits, such as lower tax rates and higher income thresholds before being subject to the higher rates.

Married Filing Separately

Married couples have the option to file separate returns. This might be beneficial in certain circumstances, such as when one spouse has significant medical expenses or other deductions subject to adjusted gross income (AGI) limitations.

Head of Household

You may qualify for this status if you are unmarried, pay more than half the cost of keeping up a home, and have a qualifying person living with you for more than half the year. The Head of Household status often provides a higher standard deduction and lower tax rates than the Single status.

Qualifying Widow(er) with Dependent Child

If your spouse died within the last two years and you have a dependent child, you may be eligible to file as a Qualifying Widow(er). This status allows you to use the same tax rates as Married Filing Jointly.

Visual Representation of Filing Status Selection

Impact of Filing Status on Standard Deduction

Each filing status has a different standard deduction amount. Below is a representation of the standard deduction for each status for the tax year 2022:

Choosing the Correct Filing Status

Determining your filing status is critical as it affects your tax rate, standard deduction, and eligibility for certain credits and deductions. You can refer to the IRS guidelines on filing status for detailed information.

For more detailed insights into tax filing requirements, you can check our other lessons:

• Lesson 5: Who Needs to File a Tax Return?
• Lesson 6: When to File Your Federal Tax Return

For an in-depth understanding of tax laws, consider checking out Understanding Taxation for Students and Business on Amazon.