When you get ready to file your taxes, part of filing is choosing your status. This is something that can change and is an important piece of information. It is important that you are choosing the right status when filing your taxes, but if you don’t understand what they are and what the different status’ mean, it can be difficult to know if you have chosen correctly. Mark Dicus & Company is here to talk about filing status’ that you can choose from and explain what they all mean.
What Does Filing Status Mean in Taxes?
The status that you file your taxes under has a big impact on your return. This helps to determine which tax bracket you are in and how much is withheld from your income. Depending on what status you file under, your standard deduction, eligibility for certain credits, correct tax and filing requirements are different. When you choose your filing status, you are looking to choose the one that will leave you owing the government the least amount of money in the end. Following are the different filing status’ and what they mean.
What Filing Status Should I Choose on W4?
– Single: If you are not married, divorced or legally separated from your spouse, you will file as a single person.
– Married Filing Jointly: For those that are married, you can file your taxes together. Both of the incomes that you earn are brought together and the deductions that you both earn are filed on your taxes together.
– Married Filing Separately: Even if you are married, you don’t have to file your taxes together. Most people only do this if it is going to help them out financially to keep their taxes separated. It is important to note that if one of you choose to itemize your deductions, you both have to commit to doing it that way.
– Head of Household: This one can be a bit confusing as it is a person that is not married, but you have to pay more than half of the cost to support yourself and have a qualifying person live with you for more than half the year.
– Qualifying Widow/Widower with a Dependent Child: During the first year after your spouse passes away and you don’t remarry, you can still file jointly. After that, for two years you can file a qualifying widow/widower status to fine their mats.
Tax Preparation, Filing, Planning & More in Salt Lake City, St. George, West Valley City, Provo, Orem, West Jordan & Greater Cedar City, Utah
There are many aspects of filing your taxes that can be overwhelming and a lot of work. If you don’t know what status you should be filing your taxes with the tax preparation professionals at Mark Dicus & Company. We will worry about all of those little details so that you don’t have to. We guarantee you will be happy with the tax preparation services you receive from our accountants as we work to get you the most out of your tax return. Call us today!