WP_Post Object ( [ID] => 1748 [post_author] => 420 [post_date] => 2018-01-16 07:00:27 [post_date_gmt] => 2018-01-16 13:00:27 [post_content] => One of the most common mistakes taxpayers make is selecting the wrong filing status – and a short lesson on tax rate schedules could help ensure you pay only what you owe in taxes and get back the tax refund you’re due. If it has been a while since you filled out a tax form using a pen, you might have forgotten about the tax rate schedule. This schedule outlines how taxes are applied based on filing status. All the tax brackets range from 10-35 percent, but the points at which you move from one to the next vary based on your filing status. If you select the wrong filing status, you very likely will not be taxed accurately because the moves to higher tax brackets are prompted by different amounts for each filing status. Also, because the amount of the standard deduction is different for each filing status, selecting the wrong one could result in paying taxes on more income than you’re required. So, selecting the correct status is very, very important. To help you determine which is right for you, following are the IRS filing statuses with some information about each one. Single Those who are not married may file as single. Your marital status on Dec. 31 of the year for which you are filing your income tax return determines your filing status. This means taxpayers who are not divorced on Dec. 31 must continue to use one of the filing statuses for married couples, which are generally married filing jointly and married filing separately. In some cases, married and single individuals may be able to file as head of household. Married filing jointly Generally, married taxpayers file a joint income tax return because of the added tax benefits, including eligibility for certain credits. Also, if your spouse died in the tax year for which you are filing, you can likely file as married filing jointly. Married filing separately Filing separately can sometimes lower a tax bill. For example, if one of the spouses has low income and high medical bills, it could work in their favor to file separately to claim these expenses as itemized deductions. This is because their spouse’s income could make it difficult to reach the threshold for claiming medical expenses. These expenses must exceed 7.5 percent of adjusted gross income to be claimed as itemized deductions and then only the amount that exceeds 7.5 percent of adjusted gross income is allowed as a tax deduction. Head of household with a qualifying person Married and single taxpayers can sometimes qualify to file as head of household when these conditions are met:
With H&R Block Tax Pro Review, an H&R Block certified tax pro will review your taxes prior to you filing your return to ensure that you get your maximum refund guaranteed.