Correctly picking the right filing status is extremely important when filing a individual tax return. Filing the incorrect status can negatively impact a tax return. Certain filing statuses are given more leniency than others regarding credits and deductions. It is important to distinguish between each filing status.
The first filing status is Single. In order to qualify filing under the single status, the taxpayer must be single at the end of the tax year, December 31st. The standard deduction for single and married filing separately is always the same. The single filing status is considered the last resort filing status. Basically if a taxpayer does not qualify to be any other filing status, than a taxpayer qualifies by default qualifies to filing as single.
The second filing status is Married Filing Jointly. In order to qualify filing under the married filing jointly status, the couple needs to be legally married and living together or they can be married but living separately, by the end of the tax year, December 31st. If a couple is divorced or legally separated during the year, than the couple can no longer qualify filing under married filing jointly. However if one spouse dies, the other spouse can still qualify to file as married filing jointly during the year of death, only. The standard deduction for a taxpayer filing married filing jointly is usually double. There are preferential tax treatments for taxpayers who qualify to file as married filing jointly. Preferential tax treatments for credits and deductions that can help taxpayers obtain higher refunds.
The third filing status is Married Filing Separately. A married couple can file under this status if the couple chooses to file separately. Some couples like to file separately because of financial and personal issues. This status is definitely not preferred due to unfavorable tax treatments regarding credits and deductions.
The fourth filing status is Head of Household. To qualify for this status, the taxpayer must not be married or is married but has lived apart from his spouse for more than half of the year, is not a qualifying widower, must be a resident, and the taxpayer maintains their household for more than half of the tax year for a dependent son/daughter, parent or a dependent relative. This status allows the taxpayer to pay lower taxes.
The fifth filing status is Qualified Widower. In order to qualify for this status a married couple must file and qualify to file under the married filing jointly status. Once one spouse passes away, the year after death the surviving spouse may file under this status for the next two years, only if the surviving spouse has maintained a home for a dependent child for the whole tax year.