Question 1

Why does filing status matter so much?

Accepted Answer

Your filing status determines: 1) Your tax rates (for MFJ they're lower than for Single by $20K+ of income). 2) The size of your standard deduction (Single $15K, HoH $22.5K, MFJ/QSS $30K). 3) The availability of benefits: the Earned Income Credit, Child Tax Credit, Education Credits, and more. The wrong status can cost $1,000-$5,000 a year. For example, a single mother who files as Single instead of HoH loses $1,500-2,500 every year due to a higher tax and a smaller standard deduction.

Question 2

Can I change my filing status every year?

Accepted Answer

Yes, the status is chosen anew every year. Your marital status is determined as of December 31 — if you married on December 30, you're considered married for the whole year. If you divorced on December 31, you're considered single for the whole year. You can switch from MFJ to MFS up until April 15 (without extensions). Switching back is not allowed.

Question 3

If I'm married, am I required to file jointly?

Accepted Answer

No, you're not required to. You can file MFS (separately). But MFJ usually results in a lower tax. Exceptions where MFS is better: 1) Your spouse has overdue debts (student loans, child support) — otherwise your refund will be withheld. 2) You suspect your spouse isn't reporting all of their income. 3) MFS results in a lower tax (rare, when both spouses have high deductions subject to income limits).

Question 4

Who counts as a qualifying person for Head of Household?

Accepted Answer

A qualifying person for HoH: 1) Qualifying child — your child (biological, adopted, or stepchild), sibling, or a descendant of these, under 19 (or 24 if a student), who lived with you more than 6 months and whom you can claim as a dependent. 2) Qualifying relative — a parent (who doesn't have to live with you, as long as you pay >50% of their support), or another relative who lived with you all year and depends on you. A grandparent, aunt/uncle, or niece/nephew can also be a qualifying person.

Question 5

My spouse is a U.S. nonresident. How should I file?

Accepted Answer

By default, you file MFS or HoH (if you have a U.S.-resident child and pay >50% of the home costs). You can make an election — treating your spouse as a "resident alien for tax purposes" — and then file MFJ. Pros of the election: lower tax and access to all benefits. Cons: your spouse must report all of their worldwide income in the U.S., and the election is irrevocable (it can be revoked only in limited cases). If your spouse has substantial foreign income, the election could increase your tax. An analysis is needed.

Which filing status is right for you?

TL;DR

What was your marital status on December 31 of last year?

FAQ — Filing Status

Why does filing status matter so much?

Can I change my filing status every year?

If I'm married, am I required to file jointly?

Who counts as a qualifying person for Head of Household?

My spouse is a U.S. nonresident. How should I file?