Tax Filing Status-Why It Matters!

When it comes to filing your tax return, one of the very first and most important decisions that needs to be made is selecting your filing status. While it may seem to be as simple as checking a box. The filing status could impact how much tax you pay, which tax credits you qualify for, and how much your standard deduction will be. Understanding the different tax filing statuses, choosing the right one can make a big difference in your tax outcome. Let’s break down each status and why it matters.

What Is a Tax Filing Status?

Your filing status is a classification that defines your family situation and determines your

standard deduction, your tax bracket and your eligibility for credits and deductions. The IRS

offers five filing statuses and most states that require the filing of a state tax return offer the same five. The five are Single, Married Filing Jointly, Married Filing Separately, Head of Household and Qualified widow(er). Let’s review each and what each offers.

1. Single

This status is for taxpayers who are not married as of December 31 of the tax year and who

don’t qualify for another status.

• Standard Deduction (2025): $15,750

• Best for: Individuals without dependents

2. Married Filing Jointly

For couples who are legally married and choose to file one combined tax return.

• Standard Deduction (2025): $31,500

• Best for: Most married couples

• Offers lower tax rates and access to valuable tax credits

3. Married Filing Separately

Married couples can choose to file separate returns.

• Standard Deduction (2025): $15,750 each

• Best for: Certain situations (like liability protection or when one spouse has large medical bills)

• Limits access to many deductions and credits

4. Head of Household

This is for unmarried individuals who pay more than half the cost of keeping up a home and

have a qualifying dependent.

• Standard Deduction (2025): $23,625

• Best for: Single parents or those supporting a dependent

• Offers lower tax rates and a higher deduction than the Single status

5. Qualifying Widow(er) with Dependent Child

Available to a surviving spouse for two years after their spouse’s death if they have a

dependent child and haven't remarried.

• Standard Deduction (2025): $31,500

• Offers the same tax benefits as Married Filing Jointly

Why Filing Status Matters for Tax Savings

You can see how your filing status determines, how much income is taxed at lower rates,

whether you qualify for credits (i.e. Earned Income Tax Credit (EITC), Child Tax Credit,

education credits) and the amount of your standard deduction, which reduces your taxable

income.

In conclusion choosing the wrong filing status could mean missing out on tax savings or even filing an incorrect return which may trigger penalties or delays in processing. Life changes such as marriage, divorce, new dependents, or the death of a spouse can all affect your filing status. Therefore, it is very important to review your eligibility every tax year to make sure you’re filing under the most beneficial status.