As we get closer to tax season, people are starting to do some calculations to see what they might be able to expect from this coming tax return. Many people are making appointments with their accountants to see how things are going to shake out. When it comes to filing your taxes, some people might not know that the filing status that you choose can make a big difference in what your tax return looks like. Mark Dicus & Company is here to talk about the different filing statuses that are available to you and what they might mean for your tax return.
Different Tax Filing Options
When you get ready to file your taxes, some people might not know that there are different filing options. Each of these filing options will play out differently in your tax return. Here are the options and the differences between them:
– Single: People that aren’t married will be single filers. They have a standard deduction of $13,850. This filing status is for those that are not married and don’t fit any other filing status.
– Head of Household: If you live in a house and aren’t married but you are responsible for providing for someone else, you are able to file as the head of household. Your standard deduction will be $20,800. You must still be unmarried, but you also have to be providing financial support for another person that lives with you. You have to provide this support for the better part of a year to qualify.
– Married Filing Jointly: This is pretty self explanatory like single filers. If you are married and filing jointly, you must be legally married and report your combined income with your spouse. The standard deduction here is $27,700. The biggest advantage of filing this way is that you only have to file and complete one tax return. You will also end up with a smaller tax liability when compared to filing separately.
– Married Filing Separately: If there are more advantages to filing jointly with your spouse, you might be wondering why in the world someone would ever file separately. There are a couple of different reasons why a couple would choose this filing option. One situation where a person has significant medical expenses that they would not be able to deduct when combined with their spouse since you can only deduct medical expenses if they equal more than 7.5% of your income. Another situation might be a couple where there are trust issues when it comes to handling finances.
Bookkeepers, Accountants & More in Summerlin, North LV, Henderson, Lone Mountain Village & Greater Las Vegas, Nevada
If you aren’t sure what filing option you should use when you file your taxes this year, you can turn to Mark Dicus & Company to help you make the right choice. We can help you prepare your taxes so that there aren’t mistakes that could end up costing you more money. We will make sure you are taking full advantage of all the deductions and credits that are available to you. Call us today!