Filing status is how the government categorizes taxpayers and applies the various tax rates, deductions, exclusions, and tax credits to those taxpayers.
Your filing status determines the tax rates that will be applied to your taxable income when your return is completed. Filing status also determines the amount of your standard deduction if you do not itemize deductions. Lastly, it also impacts your ability to claim certain other deductions, credits, and exclusions (J.K. Lasser Institute, 2020).
There are 5 different filing statuses:
1. Single
2. Married filing jointly
3. Married filing separately
4. Head of Household
5. Qualifying widow/widower
“Your filing status is used to determine your filing requirements, standard deduction, eligibility for certain credits, and your correct tax” (Internal Revenue Service, n.d.).
Find out your filing status using the IRS Interactive Tax Assistant (ITA) here: https://www.irs.gov/help/ita/what-is-my-filing-status
References
Internal Revenue Service. (n.d.). What Is My Filing Status? Retrieved from https://www.irs.gov/help/ita/what-is-my-filing-status
J.K. Lasser Institute. (2020). J.K. Lasser's Your Income Tax 2020. Hoboken: John Wiley & Sons, Inc.
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