What’s My Filing Status for Taxes:

There are 2 basic ones and 3 more elective if you qualify. The two basic statuses are single and married. Your filing status is normally determined at the end of the year. If you get married on December 31, you are considered married for the full year. If you are divorced on December 31, you’re considered single for the full year.
The five filing statuses are:
Basic:
1. Single (S)
2. Married Filing Jointly (MFJ)
Optional or Elective:
3. Head of Household (HH)
4. Married Filing Separate (MFS)
5. Qualified Widow(er) (QW)

The married status offers the most options or exceptions. Lets look at some cases were married filing jointly may not be available to you.
1. You are not living with your spouse, for what ever reason:
A. You can always file Married filing Separate (MFS).
B. If your spouse left prior to July 1st, and hasn’t lived with since and you have a dependent child who lives with you, you may well qualify for Head of Household (HH) filing status (much better than MFS).

2. Your spouse dies:
A. Year of death – you are considered married for the full year and may file either MFJ or MFS.
B. For the two years after year of death, you may qualify for Qualified Widow(er), if there is a dependent child in the household, if not you are single.
C. For the third year and on –
i. If there is a dependent child, possibly HH
ii. Otherwise most likely S, if you do not qualify for the elective status of HH.

3. You and your spouse do not share financial information.
You may file Married Filing Separate.
This can be the case in second marriages where one or both are retirement age.

Now if you are single at December 31st, you will most likely file as single. You may qualify as Head of Household (HH).

MFJ or HH or QW are normally better than MFS.
The MFS status disqualifies the taxpayer for a number of credits and some deductions. The amount of tax will be higher where there is a disparity in income between the spouses.

HH is superior to S filing status.
The standard deduction is higher, tax rates are generally lower for the same amount of taxable income, and the taxpayer may qualify for more credits.

The next article will cover how a taxpayer qualifies to elect the Head of Household filing status.