Generally, your marital status on the last day of the year determines your status for the entire year. If you are unmarried, or if you are legally separated from your spouse under a divorce or separate maintenance decree according to your state law, and you do not qualify for another filing status, your filing status is single.
Generally, to qualify for head of household status, you must be unmarried and not entitled to file as a qualifying widow or widower with a dependent child. You must also have provided more than half the cost of maintaining as your home a household that was the main home for a qualifying person. You may also qualify for head of household status if you, though married, file a separate return, your spouse has not lived in your home during the last six months of the tax year, and you provided more than half the cost of maintaining as your home a household that was the main home for a qualifying child for more than one half of your tax year.
If you are married, you and your spouse may file a joint return or separate returns.
If your spouse died in the current year and you did not remarry before the end of the year, you may still file a joint return. This is the last year for which you may file a joint return with that spouse.
If your spouse died during the previous two years, you may be able to file as a qualifying widow or widower. To do this, you must meet all four of the following tests:
1. You were entitled to file a joint return with your spouse in the year he or she died. It does not matter whether you actually filed a joint return,
2. You did not remarry before the end of the current tax year,
3. You have a child, stepchild, adopted child, or foster child for whom you can claim a dependency exemption, and
4. You paid more than half the cost of keeping up a home that was the main home for you and that child, for the whole year.
There are five filing Status:
1. Single
2. Married Filing Jointly
3. Married Filing Separately
4. Head of Household
5. Qualifying Widow(er) with Dependent Child
In general, your filing status depends on whether you are considered married or unmarried. So, first of all should determine whether you would be considered married or unmarried for the tax year. If more than one filing status applied to you, choose the one that will give you the lowest tax.
If your Spouse died during the year, you are considered married for the whole year for filing status purpose.
For the next two years you may be entitled to file under the filing status “Qualifying widow(er) with dependent child upon satisfying few conditions.
For Example if your spouse died in the year 2004, and you didn't remarry 31.12.2004, you can file under Filing status with Married Filing Jointly for the tax year 2004. And for the tax year 2005 & 2007 you may qualify for the Filing Status “Qualifying widow(er) with Dependent Child” upon satisfying few conditions.
If you remarried before the end of the tax year, you can file a Joint Return with your new spouse. Your deceased spouse's filing status would be Married Filing Separately for that year.
Your filing status is single if, on the last day of the year, you are unmarried or legally separated from your spouse under a divorce or separate maintenance decree, and you do not qualify for another filing status. And your filing status may be single if you were widowed before January 1, 2005, and did not remarry in 2005,
You can choose married filing return jointly as your married filing status if you are married and both you and your spouse agree to file return jointly. Both you and your spouse must include all of your income, exemption and deduction on your jointly return. For a return to be considered a joint return, both husband and wife generally must sign the return.
You are considered married for the whole year if on the last day of your tax year you and your spouse meet any one of the following tests.
1. You are married and living together as husband and wife.
2. You are living together in a common law marriage that is recognized in the state where you now live or in the state where the common law marriage began.
3. You are married and living apart, but not legally separated under a decree of divorce or separate maintenance.
4. You are separated under an interlocutory (not final) decree of divorce. For purposes of filing a joint return, you are not considered divorced.
Spouse died
If your spouse died during the year, you are considered married for the whole year for filing status purposes.
If you did not remarry before the end of the tax year, you can file a joint return for yourself and your deceased spouse.
If you remarried before the end of the tax year, you can file a joint return with your new spouse. Your deceased spouse's filing status is married filing separately for that year.
You can choose married filing separately as your filing status if you are married. This filing status may benefit you if you want to be responsible only for your own tax or if it results in less tax than filing a joint return.
If you and your spouse do not agree to file a joint return, you may have to use this filing status unless you qualify for head of household status.
If you or your spouse (or both of you) file a separate return, you generally can change to a joint return any time within 3 years from the due date of the separate return or returns. This does not include any extensions. A separate return includes a return filed by you or your spouse claiming married filing separately, single, or head of household filing status
You may be able to file as Head of Household if you meet all the following requirements:
A) You are unmarried or considered unmarried on the last day of the year.
B) You paid more than half the cost of keeping up a home for the year.
C) A qualifying person lived with you in the home for more than half the year. However your dependent parent does not have to live with you. But a foster child must live with you all year
|
|
|
Qualifying child ( such as a son, daughter ,or grandchild who lived with you more than half the year
And meets certain other tests) |
He or she is single |
A qualifying person, weather or not you can claim an exemption for the person. |
He or she is single married and you can claim an exemption for him or her. |
A qualifying person. |
He or she is single married and you cannot claim an exemption for him or her. |
Not a qualifying person. |
Qualifying relative * who is your father or mother |
you can claim an exemption for him or her. |
A qualifying person. |
you cannot claim an exemption for him or her. |
Not a qualifying person. |
Qualifying relative * other than your father or mother
(such as a grandparent, brother, or sister who meets certain tests) |
He or she lived with you more than half the year, and you can claim an exemption for him or her. |
A qualifying person. |
He or she did not lived with you more than half the year |
Not a qualifying person. |
you cannot claim an exemption for him or her. |
Not a qualifying person. |
Qualifying widower with dependant child
You are eligible to file your 2005 return as a qualifying widow(er) with dependent child if you meet all of the following tests.
1. You were entitled to file a joint return with your spouse for the year your spouse died. It does not matter whether you actually filed a joint return.
2. Your spouse died in 2003 or 2004 and you did not remarry before the end of 2005.
3. You have a child or stepchild for whom you can claim an exemption (This does not include a foster child).
4. You paid more than half the cost of keeping up a home that is the main home for you and that child for the entire year, except for temporary absences.
A. Taxes will be less if you file joint return instead of separate return. You can not claim following credits and deductions if you file separate returns even though stayed together during the year. Tax rate high in Separate return.
Tax rate high in Separate return.
Alternative tax will be half that allowed to a joint return
Earned Income Credit.
Student Loan Interest Deduction.
Tuition & fees deduction
Education Credit.
Child and Dependent care credit.
Adoption Credit
Credit for elderly or disabled.
Conversion of Traditional IRA to Roth IRA
Capital loss credit reduce by half Child tax credit, retirement contribution tax credit, itemized deduction, the deduction for personal exemptions are reduced at income levels by half of joint return.
In addition to this, you can not claim standard deduction if your spouse itemizes. Also if you received Social Security or Railroad Retirement benefits, you may pay more taxes
B. If you have significant medical expenses or if your state makes you file using your federal filing status, then it is beneficial to choose filing separately. |
