January 20, 2011

2010 Income Tax Returns – Facts regarding your filing status

Before the filing of your income tax return you must decide which filing status you may use. Your filing status will determine what kind of requirements, standard deductions, if you are qualified to specific credits or deductions, and your proper tax.

Apparently, there are five types of filing status:

1.    Single
2.    Married Joint Filing
3.    Married Filing Separately
4.    Head of the Household
5.    Qualified Widow(er) with Dependent Child

Here are the facts regarding you filing status choices.

•    Choosing your filing status for the last day of that year will determine your filing status for the whole year.
•    If you have more than one filing status options, go for the one that has lowest tax liability.
•    According to state law, single filing status was applied to everyone who is unmarried and legally separated.
•    For those married who will file their income tax returns jointly. Their filing status must be Married Filing Jointly.
•    To those married but their spouse died during the tax year and choose not to remarry again, they can still file for a joint return with their spouse for that year of death.
•    Head of the Household is another unmarried filing option.  And also, you must pay at least half of the price on maintaining your home.
•    In case your spouse died on that year and you have dependent child plus you meet their other conditions you can now choose the Qualifying Widow(er) with Dependent Child filing status.

Visit the irs.gov website for further information regarding to your filing status.  The IRS provides Publication 501, Exemptions, Standard Deductions and Filing Information on choosing your filing status, which you can see to their website.

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