Which filing status is the lowest tax rate

Also, the amount you can exclude from income if your employer has a dependent care assistance program is half what it is if you file jointly.

You can take only half the standard deduction, child tax credit or deduction for retirement savings contributions. If your spouse itemizes, you have to itemize too, even if the standard deduction would get you more. Usually just a bigger tax bill, but there are a few possible perks. If you live in a community property state — Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington or Wisconsin — anything couples earn generally belongs to both spouses equally, which kills off most of these perks.

If your marriage is annulled, the IRS also considers you unmarried even if you filed jointly in previous years. Don't be sneaky. Possibly lower taxes if you make a lot of money. You each use the single tax filing status.

Tax filing status options. Filing status. Who might use it. Head of household. Married filing separately. Married filing jointly. Most married couples. Qualified widow or widower. If you are not sure if one your your dependents or relatives might indeed qualify to be a dependent on your tax return, use the DEPENDucator or the RELucator and get the answer.

Filing status is used to determine such things as: filing requirements , tax rates , standard deduction , and eligibility for tax credits and tax deductions. We have a very simple question and answer tool that helps you determined your correct Filing Status: The STATucator will determine whether you should file as Single or Head of Household for example.

Get Your Filing Status Now. There are five different choices of filing status, but you can only qualify for one or two in any given year, depending on your circumstances.

You can only choose one filing status on your tax return, but your filing status may change from year to year. The Single filing status is the most basic among the filing status options. You must file as single if you were not married on the last day of the Tax Year and you do not qualify for any other filing status.

If you have dependents you might qualify as Head of Household. Also, if your spouse passed on during a tax year you might can still file as married filing jointly or separate even if you are now a qualifying widower. Not sure if your dependent s or relative s qualify as dependent s on your tax return? You may qualify for Head of Household filing status if you were single and you paid more than half the costs of keeping up a home, and you had a Qualifying Dependent or Person.

Use the HOHucator to find out if you qualify. Under certain circumstances, you might be able to file as Head of Household as a single person or even if you are technically still legally married. If you lived apart from your spouse for the last half of the year, and if you keep up a home for a dependent child, you might qualify for Head of Household. Income Tax. Social Security. Your Privacy Rights.

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I Accept Show Purposes. Your Money. Personal Finance. Your Practice. Popular Courses. Taxes Income Tax. What Is Filing Status? Article Sources. Investopedia requires writers to use primary sources to support their work. You usually have the option to itemize deductions if the total of those deductions is larger than the standard deduction for your filing status. Generally, the payment of mortgage interest, medical bills, state property taxes and charitable contributions you make are eligible to be itemized.

Your ability to lower your taxes by itemizing depends on your filing status since the larger the standard deduction you are eligible to claim, the more expenses you must pay during the year to make it worth itemizing.

Remember, with TurboTax , we'll ask you simple questions about your life and help you fill out all the right tax forms. Whether you have a simple or complex tax situation, we've got you covered. Feel confident doing your own taxes. Just answer simple questions about your life, and TurboTax Free Edition will take care of the rest. For Simple Tax Returns Only. Video: Single Tax Withholding Vs.