When taxpayers file their tax return they choose a filing status. This status determines their tax bracket and whether they are eligible for certain deductions. There are five different tax filing statuses to choose from. So, I can understand why it can be confusing for taxpayers.
But for tax professionals? I don't feel that should be the case but sometimes it is. So in today's article, let's do a brief overview of the 5 filing statuses and how to determine which one your client qualifies for come tax season. Failure to choose the correct status can result in the IRS making adjustments to your client's return, which isn't just bad for your client but also business. So let's get right to it. Here are the 5 tax filing statuses for individuals:
Your client may qualify to file their tax return under more than one of the above options. In that situation, it is your job to educate them on which one is the best fit for their tax situation. Remember, you are an advisor, but you cannot make the decision for them.
One obvious difference between the filing statuses is the tax brackets. See below for the 2024 individual income tax brackets.
2024 Tax Rate | Single | Head of Household | Married filing Jointly/ Qualified Surviving Spouse | Married filing Separately |
10% | $0 to $11,600 | $0 to $16,650 | $0 to $23,200 | $0 to $11,600 |
12% | $11,601 to $47,150 | $16,551 to $63,100 | $23,201 to $94,300 | $11,601 to $47,150 |
22% | $47,151 to $100,525 | $63,101 to $100,500 | $94,301 to $201,050 | $47,151 to $100,525 |
24% | $100,526 to $191.950 | $100,501 to $191,950 | $201,501 to $383,900 | $150,526 to $191,950 |
32% | $191,951 to $243,725 | $191.951 to $243,700 | $383,901 to $487,450 | $191,951 to $243,725 |
35% | $234,726 to $609,350 | $243,701 to $609,350 | $487,451 to $731,200 | $243,726 to $365,600 |
37% | $609,351 or more | $609,351 or more | $731,201 or more | $365,601 or more |
Source: IRS ***the income amounts are taxable income
The next obvious difference is the standard deduction. See the table below for the 2024 standard deductions.
Filing Status | 2024 Standard Deduction |
Single/Married Filing Separately | $14,600 |
Head of Household | $21,900 |
Married Filing Jointly | $29,200 |
Source: IRS
Now that you understand the differences between the statuses let's look at how to determine which one our client qualifies for. Let's start with the single taxpayer filing status.
Single Taxpayer Filing Status
The IRS considers the taxpayer single if they were never married. Seems pretty straightforward, right? Well, here is where it gets tricky. A taxpayer can be in a marriage the whole tax year and then get divorced on December 31st. According to the IRS that taxpayer would also be single, for the whole year. There are no pro-rating tax filing statuses.
Some people consider themselves single in their marriage if things aren't going smoothly. The IRS is not a fair-weather fan of your client's marriage. They only care about whether they have a legal marriage or a decree of divorce.
If the taxpayer has separated from their spouse but a divorce is not finalized before the end of the year they are still legally married. Therefore they cannot check the box "Single" on their tax return.
Let's say the taxpayer never got a divorce but they are no longer married because their spouse died. In this situation, if their spouse died prior to the tax year and they have a child they may qualify for Head of Household (HOH) or Qualifying Surviving Spouse (QSS). We will talk about those a little later and why your client would likely prefer to qualify for one of those.
Head of Household Taxpayer Filing Status
The head of household filing status unmarried taxpayers who provide a home for a qualifying child or qualifying relative. Providing a home means the taxpayer is keeping up a home. Keeping up a home includes covering the following types of expenses :
Food eaten in the home
Homeowner's/Renters Insurance
Other household expenses
Real Estate Taxes
Rent/Mortgage interest
Repairs and maintenance
Utilities
 There is an exception for certain married taxpayers whom the IRS considers unmarried for tax filing purposes. Those considered unmarried have:
not lived with their spouse for the last six months of the year.
your client does not file a joint return with their spouse.
your client paid over half the cost of keeping up the home during the year.
your client's home was the main home of the taxpayer's child, stepchild, or foster child for more than half the year.
your client claims this child as a dependent or the noncustodial parent claims him or her as a dependent with Form 8332.
For more details on who is a qualifying child or relative check out the IRS website. You can also subscribe to this e-mail list to make sure that you get my breakdown on claiming dependents.
Married Filing Jointly Taxpayer Filing Status
Married individuals can claim the married filing jointly filing status. The IRS considers them as married for the entire tax even if their wedding was on December 31st. Married individuals can also claim this status even if they did not live with their spouse at the end of the year. Taxpayers in a common-law marriage can also use this filing status if their state recognizes common-law marriage.
But why would they? The married filing jointly status allows taxpayers to combine their income on one tax return. For lower-income individuals, this may be more favorable because married filing jointly taxpayers pay a lower rate of taxes. It also allows them to combine all of their allowable deductions and expenses. This status works even if only one spouse has taxable income.
Let's say that Jonathan and Anna got married on October 5th, 2024. Jonathan's projected taxable income is $125,000. Anna's projected taxable income is $45,000. If they did not get married Jonathan would be in the 24% tax bracket and Anna would be in the 12% tax bracket. When they get married one of the taxable benefits for Jonathan is that now he will be in the 22% tax bracket. A con for Anna is that now she is also in the 22% tax bracket.
If the taxpayer's spouse dies before the end of the year they can still file as married filing jointly if they did not remarry before the end of the year.
When using this filing status both spouses must sign the tax return, even if only one has income. The exception to this is if one spouse died during the tax year or prior to the return being filed. Once your clients file a joint return they cannot choose to file separate returns for that year after the return due date.
This is important for your clients to understand because of joint and several tax liability. When filing a joint return both spouses are responsible for everything on the return. This includes tax, interest, and penalties. This means if one spouse doesn't pay, the other is now on the hook. If something is incorrect, both spouses are responsible.
If a spouse has lost their portion of a tax refund due to a prior debt of their spouse that they aren't responsible for they may be able to protect it. You can do this for them by filing Form 8379, Injured Spouse Relief.
If a spouse discovers inaccurate information on their return that their spouse or former spouse did intentionally there is also a potential way out for them. You can help them by filing Form 8857, Innocent Spouse Relief.
To prevent either of these scenarios the spouses can choose to file as married filing separately. If the spouses did not live together for the last 6 months of the year with a child involved, one spouse may be eligible to file as head of household. In either of these scenarios, the taxpayer is not responsible for what is on their spouse's tax return.
Note:Â If you are working with married clients and one of them is a nonresident alien they can not file as married filing jointly. If one spouse is a dual-status alien or nonresident alien married to a U.S. citizen they can elect for the IRS to treat them as a resident alien. This will allow them to file a joint return.
Married Filing Separately Taxpayer Filing Status
Married filing separately is a status for your married clients who do not want to file their tax returns together. If you are working with one spouse instead of both please note that you will still need the other spouse's name and social security number.
One reason your clients may choose to file separately is to limit the liability. If one spouse has prior tax debt to keep their hands clean they would not want to file with their spouse. It is also an option if they know that their spouse is not compliant and they want to file and pay timely.
Some taxpayers choose to file separately from their spouses to reduce their student loan payments. Student loan companies calculate income-driven repayment plans using adjusted gross income (AGI). Filing separately helps do this.
There are some cons to filing separately. For example the benefits of being in a lower tax bracket as married. There are also some deductions that the IRS will disallow i.e. the student loan interest deduction. The taxpayers also need to be aware of the fact that they have to both use the standard deduction or itemize. Even if itemizing is not the best option for one. There is an exception to this rule. If one of the spouses is eligible for head of household they can still use the standard deduction.
Qualified Surviving Spouse
This filing status got a name change beginning in the 2022 tax year. Prior to then it was the qualified widow(er) status. This filing status is for taxpayers whose spouse died in the prior 2 tax years and who did not remarry this tax year. If the spouse died in the current tax year they do not qualify for this status. Instead, they could yet file as married filing jointly. Also, they must have a child who they can claim as a dependent or qualifying relative.
Note that a child does not have to be a biological child. This can be an adopted child. Adopted children are always treated as the taxpayer's child for tax purposes. Even if the adoption is not completed the child has been lawfully placed with the taxpayer.
Example: The tax year is 2024. Larry's wife Jackie died in 2022. Leaving him and their 14-year-old daughter behind. Larry would qualify for the qualifying status of surviving spouse.
Based on our initial criteria Larry qualifies as a qualifying surviving spouse. There are some more criteria the taxpayer must meet as well. The first thing we want to consider is whether the taxpayer would have filed a joint return with their spouse had they not died.
Next, we confirm that the qualifying child or relative is actually a dependent.
The taxpayer paid over half the cost of keeping up the home.
The child lived with the taxpayer all of the tax year.
Then we have to consider how much gross income they had for the tax year, whether someone else could claim them as a dependent, and what their gross income was. The amount of gross income increases each year for inflation. For example, that number in 2023 was $4,700.
If the taxpayer does not claim the child as their dependent but could you should enter their name under the filing status checkboxes if they meet all of the other criteria. If you don't it will take longer for the IRS to process their tax return.
This filing status helps your client because they will receive the same filing perks as a married filing jointly family. If the taxpayer remarries they can file as married filing jointly with their new spouse. If more than 2 years have passed since their spouse has died they can file as Head of Household if all other criteria are yet met.
Example: The tax year is 2024. Larry's wife Jackie died in 2022. Leaving him and their 14-year-old daughter behind. Larry finds love again and remarries on New Year's Eve of 2024. Larry would not qualify for qualifying surviving spouse status. But he would qualify to file as married filing jointly with his new spouse.
Let's say Larry did not remarry but his wife, Jackie, died in 2021. Because her death was more than 2 years before the tax year Larry still would not qualify for qualifying surviving spouse status. Larry would be eligible to be head of household.
Now It's Your Turn
When you prepare taxes there will be people who will challenge you on your ethics. Remember that while you can't make the taxpayer do what's right, they can't make you do what is wrong. Don't be afraid to step away from a client who is asking you to do the wrong thing.
1 - Some tax professionals base their foundational pricing on filing status. Will you do this or will your base price be the same for all filing statuses?
2 - Can you tell when someone qualifies for HOH vs Single vs MFJ?
3 - Are there things about the filing statuses that left you confused? Share those questions below.
Timalyn S. Bowens EA is America's Favorite EA and Tax Expert who will work hard to find a customized legal solution for you! As an Enrolled Agent licensed through the Internal Revenue Service Timalyn can fight the IRS for taxpayers in all 50 states. As the host of Tax Relief with Timalyn Bowens and a YouTube content creator she empowers taxpayers to make educated decisions about their tax situation.
When you are facing questions regarding your personal or business taxes, working with a professional makes all the difference. At Bowens Tax Solutions, we serve our Louisville-area neighbors by providing the tax services and knowledge needed to succeed. We are here to assist you with your tax issues and preventative care. Visit our website at www.bowenstaxsolutions.com for more information.