When filing taxes, it is crucial to indicate your current status. This is because this status actually determines the amount of money you should pay in taxes. It may also be important in deciding whether to file tax returns or not. How do find the right filing status for your taxes?
Whenever you have to indicate your status, it is vital that you consider the last status you had as at 31 Dec. However, when you are in a situation where more than one status is applicable, it is safe to go with one that will require you to pay the lowest taxes possible regardless of whether you are using TurboTax 2014 or not.
Certain tax rules also bind same-sex married couples regardless of where you were married. If the marriage is legal (performed in a state or country that recognizes same sex marriages), then you should use the married status options in the 2013 federal tax return forms. This is mandatory even if both of you live in a state that opposes same-sex marriages. You can visit www.irs.gov for additional information about your taxes.
In order to choose the right status for filing taxes, here is a guideline that explains each of the five.
This status can be used with anyone who has never been married, is divorced or no longer married according to the statutes of that state.
Married Filing Jointly
When filing taxes using TurboTax 2014, this status indicates that married people can choose to file one tax return as a couple. Even if your partner died within that year, you can still use this status.
Married Filing Separately
This is the opposite of married filing jointly. Each spouse can file their taxes individually and it is useful when you want to reduce the taxes that you pay. Some couples also prefer this for their tax accountability.
Head of Household
In TurboTax 2014 or any other means you use when filing taxes, this status is used by single people who have dependents. To be eligible, you must be the provider of more than 50% of the total costs of running a home. It is also significant to know any other rules that come with this status.
Qualifying Widow/ Widower with Dependent Child
In case you are widow or widower with a child, then this is the right status for you. However, it is bound by number of conditions.
A tax filing software such as TurboTax 2014 can help you choose the right status. You can also refer to 1040 Central on the IRS website for further assistance.
Furthermore, requirements for each status can be obtained from Publication 501, Exemptions, Standard Deduction, and Filing Information on the IRS website or by dialing 1-800-TAX-FORM (800-829-3676).How To Choose The Right Filing Status For Your Taxes by Steve Jones