Rick’s Tax Corner: November 2019

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What’s the Difference?

When a taxpayer files their tax return, they need to know their filing status. What folks should remember is that a taxpayer’s status could change during the year. So, any time is a good a time for a taxpayer to learn about the different filing statuses and which one is best for them.

Knowing the correct filing status can help taxpayers determine several things about filing their tax return:

• Is the taxpayer required to file a federal tax return or should they file to receive a refund?
• What is their standard deduction amount?
• Is the taxpayer eligible for certain credits?
• How much tax they should pay?

The taxpayer’s filing status depends on whether you are single or married on Dec. 31.

Here’s a list of filing statuses and a description of who claims them:

• Single. Normally this status is for taxpayers who are unmarried, divorced or legally separated under a divorce or separate maintenance decree governed by state law.
• Married filing jointly. If a taxpayer is married, they can file a joint tax return with their spouse. When a spouse passes away, the widowed spouse can usually file a joint return for that year.
• Married filing separately. Alternatively, married couples can choose to file separate tax returns. It may result in less tax owed than filing a joint tax return.
• Head of household. Unmarried taxpayers may be able to file using Head of Household, but special rules apply. For example, the taxpayer must have paid more than half the cost of keeping up a home for themselves and a qualifying person living in the home for half the year. Taxpayers should check the rules to make sure they qualify.
• Qualifying widow(er) with dependent child. This status may apply to a taxpayer if their spouse died during one of the previous two years and they have a dependent child. Other conditions also apply.

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OUR FIRM:
Rick S. Vourganas—CPA
Kristin Enochs—- Firm Administrator
Micah Cypert—Sr. Tax Accountant