The Facts Behind Your Tax Filing Status
Tax attorneys in Washington know that as tax time approaches, it is every individual’s ultimate goal to pay less to the IRS and receive more in their return. And while there are different ways one can go about this and do so in a legitimate manner, it is important all reported information is accurate. We are given the option of obtaining certain tax credits, filing deductions, and even the status we choose to file determines how much we have to pay in, and how much we may actually get back into our pockets.
With that in mind, tax lawyers in Washington want to provide you with some insightful information regarding your tax filing status, and hope that it can only lessen what Uncle Sam is asking you for back as you begin filing your return. Efile.com breaks down in further detail the five ways you can file below.
Married Filing Jointly– When you chose this option, while it may help reduce your owed tax, be aware that you both “report your income, deductions, credits, and exemptions on the same tax return.” Not only that, but you are also held responsible for any tax liability your spouse may have accrued. In some cases, individuals may qualify for Innocent Spouse Relief if they believe they had no involvement and should not be held accountable for any penalties or interest their spouse is required to pay.
Single- If you were not married on the last day of the year you are filing for, and you do not qualify as Head of Household, you will have to resort to filing as “single.”
Married Filing Separately- If you choose to file alone, although you are married, you may file with this status on your tax return. It is also important to take note that majority of those who file jointly as opposed to separate generally receive a higher tax refund.
Head of Household- This particular status has many perks and benefits that come along with it, however, one must qualify to accurately claim it. If you are single, or unmarried, you may qualify for head of household. Tax legal representatives clarify that “unmarried” means divorced, or legally separated as well. In order for you to meet the requirements of this status, you must have “paid more than half the cost of “keeping up a home” for the year.”
Qualifying Widow(er) with Dependent Child- This filing status “allows you to retain the benefits of the Married Filing Jointly status for two years after the year of your spouse’s death.”
As you prepare to have your return completed, be sure to consult with your tax preparer on which status best suites you, and will allow you to pay in less, or even receive more. Tax fraud attorneys in Washington also remind you that as you decide which status is best, you must legally qualify to do so.
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