The choice of filing status has significant implications for a taxpayer's tax brackets and standard deduction.
Single
Default filing status for unmarried taxpayers.
Generally has the lowest standard deduction and highest tax brackets, making it less financially favorable.
Head of Household
For unmarried individuals or those considered unmarried (e.g., under abandoned spouse rules).
Must maintain a household for a qualifying person (a dependent).
A qualifying person must meet specific criteria:
They must be a dependent of the taxpayer (either a qualifying child or qualifying relative).
The dependent must be related to the taxpayer, not just a qualifying relative who only meets the relationship test by living with the taxpayer.
Must live with the taxpayer for more than half of the year or must be a parent of the taxpayer.
Jason: A single taxpayer with a dependent, Layla.
Layla is a qualifying relative because she lived with Jason, had zero income, and Jason provided all her support.
Layla does not qualify as a qualifying person for Jason to file as Head of Household since she is not related to him.
Maria: Jason’s mother, also a qualifying relative.
Maria did not live with Jason but was provided more than 50% support.
Since Maria is related to Jason, she qualifies as a qualifying person, allowing Jason to file as Head of Household.
Married couples have options of filing:
Jointly: Both report income and deductions on one tax return; generally the most financially beneficial option.
Separately: Each spouse reports their share separately; sometimes beneficial for specific tax situations (e.g., high medical expenses or income-driven student loan repayments).
If one spouse passes away during the tax year, the surviving spouse is considered married for that year.
Available for two years after a spouse's death if the surviving spouse has a dependent child.
The surviving spouse can use this status for better tax rates and standard deductions.
Mark: Married to Mary until her death in 2024.
Mark can file as Married Filing Jointly or Separately in 2024 (the year Mary passed).
In 2025 and 2026, Mark can file as a Qualifying Widow/Widower with dependent child since he has a child named Matt.
In 2027, Mark becomes an unmarried individual and must choose between Single or Head of Household status, with the latter being possible due to Matt's dependency and residence.