Filing Status

Overview

Your filing status determines how much you will pay in taxes each year, and it is your marital and family status on that last day of the tax year that determines your filing status.

If you were married on December 31, 2009, then you will file as married for the 2009 tax year. If you were married for most of 2009, and the first day of your divorce is December 31, 2009, you will need to file as single for that tax year.

In general, unmarried taxpayers pay a lower amount that a married couple would pay on the same amount of income. The rationale behind these varying tax statuses is that married couples share certain benefits and that adults with dependents have costly responsibilities. Tax payers who are eligible for multiple filing statuses have the flexibility to select the status that benefits them most.

You must file your taxes honestly and accurately. Otherwise, the IRS will penalize you, and you may be liable for criminal charges. With TurboTax, you can prepare, print and e-file for free.

Tax Brackets

Your income determines how much you pay in taxes. Each year, the Internal Revenue Service (IRS) releases a tax rate table with several brackets. Your income will fall into one of these brackets, and you will be required to pay a certain amount that is based on a certain rate. In general, people with higher incomes pay taxes at a higher rate.

Each year, the IRS updates its tax schedule based on adjusted costs of living and economic inflation during the previous year.

Single

People who are unmarried, divorced, or legally separated must file as single. Some situations allow taxpayers to file as a different status. A widow(er) or head of household can explore different filing options.

Married Filing Jointly

If you are married, you have the option to file a joint return on your combined incomes. If you are legally separated or divorced before the end of the tax year, you cannot file a joint tax return. In certain situations, the IRS considers married people single for tax purposes.

Married Filing Separately

In most situations, it is advantageous for married couples to file jointly. In any case, there are situations when a couple might choose to file separately. Married couples who file separately will generally pay more than people who file as single. People who are single will pay less on the same amount of income as married people who file separately from their spouses.

Head of Household

This status includes taxpayers who are unmarried and pay more than half of the costs required for maintaining a home. To qualify for this status, you must be living with a relative who you can claim as a dependent. Dependents include children, stepchildren, grandchildren, and step-grandchildren.

Surviving Spouse

This status is available for taxpayers who maintain a home with dependents. If your spouse died within the last two years, you may qualify as a surviving spouse as long as you have not remarried. After two years, you may be able to file as a head of household.