When it comes to filing taxes, you really can’t do anything until you know your filing status. Your filing status determines everything from your tax rate to your standard deduction to whether you qualify for certain itemized deductions and credits. It should be fairly simple to figure out which tax filing status is yours but sometimes it’s not so clear. So, let’s clear it up for you!
Single Filing Status
If you were single during the tax year, or you got legally separated or divorced by December 31st of the tax year, then it should follow that you will file single on your tax return. While this is mostly true, there are other possible options that could get you a better standard deduction and tax rate. That happens when you have children or other dependents you can claim. We’ll talk about those in a minute.
For now, the 2024 Standard Deduction for those who file single is $14,600.
The Head of Household Filing Status
If you were unmarried by or on December 31st of the tax year and you can claim someone in your household as a dependent, then you can most likely file as head of household. The qualifying child or adult dependent must have lived with you for more than half the year, and you have to pay for more than half of the expenses for the household.
One thing to remember is that a dependent can only be claimed on one tax return. In other words, if you share custody of a child with your ex-spouse, only one of you can claim that child as a dependent for tax purposes. The person who is not claiming the dependent must file as single if they are unmarried.
The advantage of using the head of household status is a lower tax rate and a higher standard deduction of $21,900. You may also qualify for certain tax credits for children and/or dependents.
Married Filing Jointly
Congratulations! You got married by or on December 31st, which means you have two options for your tax filing status. Right now, we’re going to talk about married filing jointly. In this case, you and your spouse will combine your income, your itemized deductions if you’re choosing to itemize, and any credits you might be getting.
With a lower tax rate and higher standard deduction, married filing jointly is usually the best status for lowering your tax liability as a married couple.
The 2024 standard deduction for married filing jointly is $29,200.
Married Filing Separately
If you don’t want to file jointly with your spouse, your other option is married filing separately. In this case, you will only report your income, deductions, and potential credits on your return, similar to filing single. Even if you are filing separately, you and your spouse both have to choose either the standard deduction or itemized deductions. You cannot itemize deductions if your spouse does not. There are specific circumstances where this status may be better for you than married filing jointly, but it is best to get your tax preparer to do a comparison before choosing between the two.
The 2024 standard deduction for married filing separately is the same as single: $14,600.
Qualifying Surviving Spouse
There is one other tax filing status that can only be used if your spouse passed away in the previous year. If you usually filed as married filing jointly, then you can do the same in the year that your spouse passed away. For the two following years, you can choose the qualifying surviving spouse status as long as you have a child or a stepchild that you can claim as a dependent.
The 2024 standard deduction for qualifying surviving spouse is the same as married filing jointly at $29,200.
For more information on the different types of tax filing status, please read: Filing Status.
Not sure which tax filing status is right for you? Moore & Paquette Tax Group can answer your questions.
Please note that tax laws change often, and you should always check with a tax preparer for the most up-to-date information.