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How to choose the right federal tax filing status

Yahoo Personal Finance· Getty Images
Kaz Weida
Updated 7 min read

If you’ve ever stared down IRS tax brackets trying to figure out where you fit, you’ll notice filing status has an outsized impact on your federal income tax. Your filing status determines not only which tax forms you fill out but also your eligibility for certain tax credits, which tax deductions you can take, and other tax benefits.

Because choosing the right filing status can make a big difference in your tax return, let’s take a closer look at the five filing statuses and how they affect your tax liability.

Your filing status is a collection of household characteristics that determine the rate at which your adjusted gross income (AGI) is taxed. It’s influenced by the following factors:

  • Marital status

  • Number of dependents or children

  • Occupation

  • Dependent care expenses

  • Income

Choosing the right filing status is crucial because it affects your standard deduction amount, the child tax credit or earned income credit you’re eligible for, and other tax credits that could significantly lower the amount of tax you pay.

Read more: What is taxable income?

Federal tax filing requirements mandate that you choose a filing status for your tax return. Taxpayers can choose between the following five categories, although it's worth noting you don’t have to meet the filing status qualifications for the entire tax year.

In some cases, your status (marital or otherwise) might fall into the category of "it’s complicated." For those situations, your filing status relies on whatever your marital status is at the end of the calendar year or tax year.

If one of the following describes your situation, you likely qualify for single status by the IRS.

  • You’ve never been or are not currently married. As long as you are not legally married by the last day of the year, the IRS considers you an unmarried taxpayer for the entire year.

  • You’re divorced or legally separated. If your divorce has been finalized or you’ve got a separate maintenance decree and are considered legally separated by Dec. 31, you’re a single filer.

There are a few other scenarios that might qualify you for single status, such as being in a registered domestic partnership or being widowed. The rule of thumb for tax purposes is if you’re unmarried and don’t qualify for any other filing status such as head of household or qualified widow, then you’re single according to Uncle Sam.

If you’re married and doing your taxes together, or if your spouse died during the tax year, this filing status is likely the best fit for your situation. However, married filing jointly status does have some stipulations.

  • You have to be legally married by the end of the tax year. Even if you’re in the process of getting a divorce, as long as you are still legally married at the end of the year, you can file jointly.

  • You have to file jointly. You and your spouse must file a joint return, which means combining gross income, unearned income, and sorting through finances together.

  • Your spouse dies during the tax year. If your recently deceased spouse died any time during the tax year for which you are filing, the IRS considers you married for the entire tax year.

When it comes to the government, marriage has its benefits. Married couples filing jointly often earn a larger standard deduction and other tax credits that ultimately give them lower tax liability.

Read more: Tax credit vs. tax deduction: What's the difference and which is better?

Couples who are married can still choose to file separately, although they’ll have to get on the same page about whether to take the standard deduction or itemize. There are a few advantages to filing separately, including the following:

  • You want to keep your finances separate. This sounds obvious, but some couples have good reasons for keeping their financial lives separate, especially if they have drastically different financial situations. A separate return can mean a smaller tax refund, but bigger peace of mind.

  • You have significant out-of-pocket medical expenses. For couples with a high combined income, filing separately can enable them to take certain deductions for medical expenses they might not otherwise be eligible for.

Note that if you live in a community property state, it negates most of the tax benefits for couples to file separately. Married filing separately has other significant disadvantages, including the loss of student loan interest deduction and other premium tax breaks.

Filing separately can also reduce your standard deduction, child tax credit, and retirement savings contribution deduction.

Read more: Standard deduction vs. itemized: How to decide which tax filing approach is right

According to the IRS, incorrectly claiming a filing status is one of the most common mistakes taxpayers make when filing taxes. Head of household filing status can be particularly tricky because it covers a narrow set of the following circumstances:

  • You must be unmarried, but the main provider for a household. This may sound vague, but the IRS has very specific rules for what defines the head of the household. You’ll need to be a single or unmarried taxpayer who fronts half the costs of support and other household expenses of a qualifying person such as a dependent child.

  • The qualifying person lived with you for more than half the tax year. Dependent children generally need to be under the age of 19 (24 if they’re a student) and living with you for a majority of the tax year. The exception to this rule is if the qualifying person is a dependent parent.

The benefit to claiming head of household filing status is that you not only get a lower tax rate and a higher standard deduction, but you can claim certain deductions for your home such as property taxes and mortgage interest.

If your spouse recently died during the tax year, you can (and should) use married filing jointly status. However, once that first tax year has passed, surviving spouses can continue to claim some tax benefits. Consider qualifying widow or widower status if you meet these requirements.

  • Your spouse died within the last three tax years. During the year in which a spouse dies, the survivor can use the married filing jointly status. For the following two tax years after that, taxpayers can use the qualifying widow or widower status.

  • You have a dependent child or children. This filing status is only available to widows or widowers who are still supporting and living with dependent children, although temporary absences such as military service are allowed.

  • You remain unmarried. In order to claim this filing status option, you’ll need to remain unmarried in the eligible tax years following your spouse’s death.

The benefit to qualifying widow or widower status is that it taxes the surviving spouse as if they were married filing jointly for several years after the death, reducing tax liability and enabling better financial stability for survivors.

Read more: Free tax filing: 7 ways to get your 2023 taxes done

To choose the correct filing status for your income tax return, start by determining your marital status at the end of the year.

If you’re legally married…

Choosing your filing status depends on your income and potential deductions, but most couples will benefit from declaring married filing jointly status on their tax returns.

If you’re unmarried but you’re supporting a dependent…

Whether you’re a divorced or single parent or a surviving spouse, you may qualify for head of household filing status or the tax benefits of qualifying widow or widower status.

If you’re unmarried or single…

At the end of the tax year if you’re unmarried and can’t claim any dependents, you’re likely to be required to file as a single taxpayer.

You can amend your tax return at any time, including to change your filing status. Keep in mind this can alter your tax liability and could result in a bigger tax bill or a refund. However the IRS does set a limit of allowing taxpayers to use Form 1040X to go back no more than three tax years to make adjustments.

Your household filing status usually corresponds to your marital status at the end of the tax year, combined with other factors such as whether you have dependents. Still not sure if you’re choosing the correct filing status for your federal tax return? You can use the IRS filing status tool to confirm your filing status, or consult with a tax expert.