Tax Filing Status
Lesson:
When someone files his federal taxes, he must categorize himself with a filing status.
The filing status determines the levels of various taxes rates and credits available to that person.
It is determined on the last date of the tax year.
There are currently five different filing statuses:
- Single - Unmarried, divorced, or legally separated with no dependents
- Married filing jointly - Married to another person (or widowed that year) and filing a single tax return
- Married filing separately - Married to another person (or widowed that year) and each files his own tax return
- Head of household - Considered unmarried, paid the majority of household bills and either live with a dependent relative for the majority of the year or responsible for parents' bills whether they live with the filer or not
- Qualifying surviving spouse - Widowed and in the two years following the tax year of death, paying the majority of household bills, living with a dependent child for a full year
You're a tax preparer, helping with a tax return.
The only relevant information you've discovered is as follows:
- Karen Martin had a spouse who passed away at the start of the year, and she maintained the household for her 9-year-old twins for the rest of the year.
What filing status should be used for the tax form?
Answer:
- The status that should be used is qualifying surviving spouse.
Explanation:
-
Remember the appropriate definition: Qualifying surviving spouse - Widowed and in the two years following the tax year of death, paying the majority of household bills, living with a dependent child for a full year