Form 1040 requires the taxpayer to select a filing status, dependent upon his/her relationship status and household arrangement. The taxpayer must select one status from five options:
Single: Available to the taxpayer who was either unmarried or legally separated under a state law divorce decree as of December 31 of the tax year or was widowed before January 1 of the tax year and did not remarry during the tax year.
Married Filing Jointly1: Available to the taxpayer who was either married2 as of December 31 of the tax year, became a widow(er) during the tax year and did not remarry, or was married as of December 31 of the tax year but became a widow(er) between the end of the tax year and filing the return. By filing a joint return, both spouses are generally responsible for the tax and any interest or penalties due on the return. If one spouse does not pay the tax due, the other may be required to.
Married Filing Separately: Available to the taxpayer who meets the Married Filing Jointly requirements. Filing separately, however, additionally requires each spouse to report their own income, exemptions, deductions, and credits. With this option, taxpaying couples will usually pay more tax than if they would have filed jointly. Additionally, each spouse cannot take the student loan interest deduction, the tuition/fees deduction, the education credit, or the earned income credit. Finally, a spouse cannot take the standard deduction if his/her spouse itemizes deductions. Should a tax controversy issue arise in the future, each spouse is liable only for issues arising from their own return.
Head of Household: Available to the taxpayer who provides a home for some other person(s) and was either legally separated under a state law divorce decree as of December 31 of the tax year, married but lived apart from spouse for the final six months of tax year, or married to a nonresident alien at any time during tax year and does not choose to treat him/her as a resident alien. Additional requirements must be met, including providing at least half of the homes upkeep costs and satisfying particular dependent requirements.
Qualifying Widow(er) with Dependent Child: Available to the taxpayer who(s) (1) spouse died in either of the two years preceding the current tax year and did not remarry before December 31 of the tax year, (2) child/stepchild lived in the home for the entire tax year and can be claimed as a dependent, (3) paid over half the home’s upkeep costs, and (4) could have filed a joint return with the now-deceased spouse in the year he/she died.
In some instances, the taxpayer may be eligible for more than one filing status and, thus, should consider which option would trigger the lowest tax liability. Determining potential tax liability may require assistance from a tax professional (many Form 1040 line items are affected by filing status, including tax rates and dollar thresholds, standard deduction amount, etc.)
1 Generally, a husband and wife cannot file a joint return if either spouse is a nonresident alien at any time during the year. However, if you were a nonresident alien or a dual-status alien and were married to a U.S. citizen or resident alien as of December 31 of the tax year, you can elect to be treated as a resident alien and file a joint return.
2 For federal tax purposes, a marriage means only a legal union between a man and woman.
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