| Everybody has heard about tax filing status but do | | | | The biggest obligation that makes this applicable to you |
| you know exactly what they are and which one you | | | | is that you as an individual must have paid more than |
| should use? Many people don't. The IRS does a great | | | | half the cost of maintaining a home for you and your |
| job of explaining the different options on their site but | | | | spouse to qualify. |
| you may not want to dig through all of the articles to | | | | If you are married and the above rule does not apply |
| find it so I thought I would give a brief run down of the | | | | to you, consider filing as "Married Filing Separately." This |
| different options. | | | | is simply two people that are married filing separate |
| First, you have to consider two things when | | | | returns. If you are married, remember that you have at |
| determining your tax filing status: | | | | least two options for filing. Many tax preparation |
| What was your marital status on the last day of the | | | | software packages allow you to compare the options |
| year? If you are getting ready to start your taxes for | | | | to see which results in a smaller tax liability (or higher |
| 2008, what was your marital status on December 31st, | | | | refund) for you. |
| 2008? Next, if more than one filing status applies to | | | | Next, "Head of Household" applies to somebody who |
| you, choose the one that gives you the lowest tax | | | | is unmarried and paid more than half the cost of |
| obligation. You're not cheating the government by doing | | | | maintaining a home for yourself and somebody else, |
| this. This guideline is straight from their website. | | | | (referred to as "a qualifying person" by the IRS) |
| Now that you know the two things to consider, let's | | | | Finally, qualifying widow(er) with dependent child. If your |
| look at each of the tax filing status choices and figure | | | | spouse passed away in 2006 or 2007 and you have |
| out which applies to us. Remember that is very | | | | a dependent child, you may qualify for this deduction. |
| probable that more than one will apply. | | | | There are other conditions that may apply so it is |
| The first is "Single." If you are unmarried, divorced or | | | | suggested that you see a tax professional if you are |
| legally separated according to the laws of your state, | | | | going to use this as your tax filing status. |
| you are "single." | | | | Remember to try the different options that apply to |
| The next is "Married Filing Jointly". If you are married, | | | | you to see which will provide you with the best |
| you and your spouse may file a tax return together. | | | | deduction. |