Understand Different IRS Filing Statuses

The five different filing statuses recognized by the IRShousehold for more than half the year.
are as follows.Qualifying Widow(er) with Dependent Child - in order to
Single - according to the IRS your filing status is singlequalify for this filing status you must have a qualifying
if you are either unmarried or legally separated from adependent child for two years following the year your
former spouse on the last day of the tax year.spouse died.
Therefore if you were legally single on or beforeOnce you are legally married, you can no longer file as
December 31st, 2007 then you will need to file assingle. You must file either Married Filing Jointly, Married
single on your tax return.Filing Separately, or Head of Household. Please keep in
Married Filing Jointly - in order to be considered marriedmind that there are tax consequences that arise from
by the IRS a man and woman must have theirbeing married. If only one spouse earns a salary then
marriage legally recognized by the federal government.you actually get a marriage bonus. However, if both
You can choose to file jointly if you and your spousepeople are wage earners, then you face the marriage
agree to file a joint return. However, you will include allpenalty. This is because when you file jointly your
combined income, exemptions, and deductions on yourincome is taxed at your highest marginal rate.
return.In 2003, Congress attempted to fix the marriage
Married Filing Separately - if you are married you canpenalty with an increase in the standard deduction for
also chose to file Married Filing Separately. However,married couples filing jointly. The amount was increase
this status generally has the highest tax liability andto $9,700 for the 2004 tax year, then to $10,000 for
couples can often save hundreds by choosing to file athe 2005 tax year.
joint return. If you are unsure if you would be better offUpon getting married, there are a number of things you
filing separated or jointly then you may want to speakwill need to consider for tax purposes. First of all, one
to a tax professional.person is probably going to need to change their
Head of Household - if you qualify to file as a Head ofaddress and/or name with the IRS and Social Security
Household your tax liability will likely be lower then filingAdministration. To do so you will need to file form
as Single. However you must meet certain criteriaSS-5 with the Social Security Administration and IRS
such as having a qualifying individual live in yourForm 8822 with the federal government.