Getting your Filing Status Correct
Selecting the right filling status makes a great difference in your refund ultimately and is quite important. Your standard deduction and the amount of tax your owe varies based on whether you are single, married, or head of household. The wants you to make the right selection and therefore is providing some useful tips.
If you have gotten married or gotten a divorce during the tax year, your filing status is your status on the last day of the year. And maybe more than one status applies to you. For instance, you are both single and Head of Household. Select Head of Household as the tax your owe will be less.
Married couples have the unique ability to file jointly or separately. Often this selection is made based on the overall tax consequences of the filing status. State taxes can be reduced be filing separately in states like Ohio, make this selection attractive.
If your spouse passed away during 2009, you can file jointly for this one year only with your deceased spouse. And if your spouse died during either 2007 or 2008 and you have a dependent child, filing Widow(er) with Dependent Child can improve your tax return if you meet certain conditions. (Check Publication 501)
Head of Household implies that you are single, have paid more that 50% of the cost of your home, and have a qualified dependent in the home. This status was often claimed incorrectly but has recently been looked at closely but IRS auditors for misapplication.