Tax Basics: Filing Status

The Facebook world isn't the only place interested in your relationship status-the IRS wants to know too! However, they call it your filing status, and they care because it helps determine the rate at which your income is taxed.   We've got a breakdown of all the different status types, so that there isn't any confusion.

Things to Remember: To be considered married, you must be legally married maintaining a marriage license within the state that you file. Common law is not recognized by the IRS. In the same respect, you are not single unless you have a legal separation from a divorce decree. If the divorce is not final by December 31st of the tax year, then you will file either MFJ or MFS depending on circumstances. Whatever your legal martial status is on the last day of the tax year, that is what you must file by. For example, if you were married in 2020 from January to July, but divorced in November then you are now single due to not being married on 12-31-2020. MFJ or MFS may have different benefits at the federal and state level depending on what state you file in. Consult with your tax advisor to get information on what is most beneficial for your situation. Haley M. Gardner, CPA is always happy to answer any questions you may have on your specific filing status situation

Filing Statuses

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