What Is Tax Filing Status and How Does It Affect a Taxpayer’s Tax Return?

Ines Zemelman, EA

• 30.05.22 • 5 min read

When it comes to taxes, there are a lot of things that people don't know or understand. One common thing is tax filing status. What is it and how does it affect your tax return? In this blog post, we'll go over what tax filing status is and how it can impact your return. We'll also give you some tips on how to choose the right filing status for you. So, whether you're confused about what tax filing status is or just want to make sure you're choosing the right one, keep reading!

What is Tax Filing Status?

Tax filing status is used to determine a person’s federal income tax. It can also affect other aspects of a taxpayer's return, such as their standard deduction and tax credits. In order to file your taxes properly, you must provide information about your marital status when filling out your tax forms. The five main types of tax filing status for a taxpayer are:

Each filing status has its own requirements and benefits, so it's important to know which one applies to your situation the best! In the next section, we’ll cover that information to help you determine which one is right for you.

When Does Filing Status Matter?

Tax filing status matters because each category has different requirements and benefits to it. For example, there are tax credits that apply only to single people and couples filing together. Your marital status (i.e., whether or not you're married) also affects your standard deduction and eligibility for certain tax deductions. Other filing statuses may allow you to claim more dependents.

Whether or not you qualify for a certain status can determine whether or not you get tax credits like the childcare credit, education credit, family credit, etc. You must file your taxes under an eligible category that qualifies you for these credits.

Who Can Use Each Tax Filing Status?

Let's break down the five main tax filing statuses. Here are some general requirements you'll need to meet in order to file under each category.

1. Single

You must be unmarried for the entire year, including not being married at the end of the year. You can also file as single if you're divorced but haven't remarried, or you've legally separated from your spouse. The main benefit of filing as single is that you can claim a higher standard deduction than most other filing statuses.

2. Married Filing Jointly

You must be married to someone else by the end of the tax year. You can file your taxes jointly even if you were not married at the start of the year, but you must marry that person before filing your return. Married filing jointly typically gets a higher deduction than others because it allows for both spouses' incomes to be combined into one larger deduction.

3. Married Filing Separately

If you're married, but choose to file a separate return rather than filing jointly, your deduction will typically be smaller since the standard deduction is split between both spouses' personal income tax returns. You can also file separately if you lived apart from your spouse for the last six months of the year and one of you has to pay for an additional tax on their personal income.

4. Head of Household

You can file as head of household if you are not married, but maintain a home with a qualifying person (like your child or parent), are considered unmarried because you provide at least half the support for that person, and meet certain other requirements. Head of the household typically gets a higher deduction than others because it allows for only the head of the household's income to be combined into one larger deduction. There are also rules regarding how much support you provide when determining if you can file this way.

5. Qualifying Widow or Widower with Dependent Child

This status is most often used after the death of your spouse. When you file under this category, the standard deduction is typically higher than for most others because it allows for your deceased spouse's income to be combined into one larger deduction along with your own personal income tax return. You can also claim a child dependant if that person meets certain requirements.

Which Status Should I Use?

The easiest way to determine which status you should file under is to look at your tax situation. Let's go over the different categories and see if they apply to your personal situation.

UNMARRIED PEOPLE: You will usually use single filing if you are not married, but there may be times when someone else can claim you as a dependent, or you can claim another person as a dependent. You cannot claim yourself as a deduction on your personal income tax return.

MARRIAGES: If you got married during the year, you will usually use married filing jointly if both spouses work and file personal income taxes. If only one spouse works, you may have to use married filing separately if the working spouse did not support the other and did not live together for six months of the year.

HEAD OF HOUSEHOLD: You can file under this status if you are unmarried but maintain a home with a dependent, such as your child or parents, and meet certain dependency requirements. You must provide more than half of their support, and if you are married, your spouse must not live in the home for six months of the year. You can also file under this status if you are divorced and choose to use the same filing status as your former spouse.

DIVORCES: If you recently got divorced or separated, then you will generally file under head of household unless you have dependents that were not included with your spouse.

UNMARRIED PARTNERS: If you are in a civil union or domestic partnership, then you will usually use the same filing status as your partner.

STUDENTS: You can file under this category if you are single and considered to be financially dependent on someone else during the year. You must also be a full-time student and not age 24 or over by the end of the year. If you are considered financially independent, then you will usually use single filing status unless your parents can claim you as a dependent on their tax return.