Learn and Understand the 5 Tax Filing Statuses
12m
·
Tez Talks Taxes
·
Have you ever wondered if you qualify as single or head of household? Have you ever been curious about that mysterious Qualifying Widow(er) status that brings a ton of confusion? Well, wait no more! Listen to this episode to get the details of each status. It's broken down for you in a 12 minute review that will shed light on their requirements. There are even a couple of examples to explain tricky tax applications. You may hear a tax term or two that will leave you curious to know further details, so keep an eye out for the next episode which will cover those terms. As always, reach out to me if you have questions. Look below for the show notes! Don't forget to subscribe! Thanks for listening.
Show Notes:
- The five filing statuses are: Single, Head of Household, Married filing Jointly, Married Filing Separately, and Qualified Widow(er)
- The standard deduction for Single Status is $12,200
- The standard deduction for Married Filing Jointly is $24,400
- The standard deduction for Married Filing Separately is $12,200
- The standard deduction for Head of Household is $18,350
- The standard deduction for Qualifying Widow(er) is $24,400
Comparing the two married statuses:
MFJ generally is more beneficial due to a giving a lower tax rate and higher standard deduction. Additionally you are not able to take the following deductions and credit when filing MJS:
- Earned Income Credit
- Child and Dependent Care Credit
- Educational Credits
- Elderly or Permanently Disabled Credit
- Credits or Exclusion for Adoption Expenses
- and the Exclusion of any income from qualified U.S. savings bonds used for higher eduction expenses.
Keep in mind that if you file using MJS, you will have to use the same "deduction" that your spouse used. Meaning if your spouse took the standard deduction on their federal tax return, you must do the same. If the spouse itemized, you must do the same.
The MJS has its disadvantages, however it's a great tool for tax planning or for refraining from any responsibility to a tax liability that your spouse may owe on their tax return due to underpayment of taxes.
Follow me on Instagram: TaxExpert
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Learn and Understand the 5 Tax Filing Statuses
Have you ever wondered if you qualify as single or head of household? Have you ever been curious about that mysterious Qualifying Widow(er) status that brings a ton of confusion? Well, wait no more! Listen to this episode to get the details of each status. It's broken down for you in a 12 minute review that will shed light on their requirements. There are even a couple of examples to explain tricky tax applications. You may hear a tax term or two that will leave you curious to know further details, so keep an eye out for the next episode which will cover those terms. As always, reach out to me if you have questions. Look below for the show notes! Don't forget to subscribe! Thanks for listening.
Show Notes:
- The five filing statuses are: Single, Head of Household, Married filing Jointly, Married Filing Separately, and Qualified Widow(er)
- The standard deduction for Single Status is $12,200
- The standard deduction for Married Filing Jointly is $24,400
- The standard deduction for Married Filing Separately is $12,200
- The standard deduction for Head of Household is $18,350
- The standard deduction for Qualifying Widow(er) is $24,400
Comparing the two married statuses:
MFJ generally is more beneficial due to a giving a lower tax rate and higher standard deduction. Additionally you are not able to take the following deductions and credit when filing MJS:
- Earned Income Credit
- Child and Dependent Care Credit
- Educational Credits
- Elderly or Permanently Disabled Credit
- Credits or Exclusion for Adoption Expenses
- and the Exclusion of any income from qualified U.S. savings bonds used for higher eduction expenses.
Keep in mind that if you file using MJS, you will have to use the same "deduction" that your spouse used. Meaning if your spouse took the standard deduction on their federal tax return, you must do the same. If the spouse itemized, you must do the same.
The MJS has its disadvantages, however it's a great tool for tax planning or for refraining from any responsibility to a tax liability that your spouse may owe on their tax return due to underpayment of taxes.
Follow me on Instagram: TaxExpert
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