Your filing status is important because it determines:

• Whether you are required to file a return
• The correct rate at which you should be taxed
• The amount of your standard deduction
• The tax credits and deductions to which you are entitled

The five IRS filing categories are:

• Single
• Married Filing Jointly
• Married Filing Separately
• Head of Household
• Qualifying Widow(er) with dependent child

To determine which filing status you can use, there are other things you should also know:

• Your status on December 31 determines your filing status for the entire year.
• After filing a joint return, you cannot decide to amend your return to separate returns for that year after the return's due date.
• If you and your spouse choose to file a joint return and one of you is responsible for unpaid state or federal taxes due, you will both be responsible for the debt.
• A joint return requires both signatures. If your spouse is away from home, you should either sign the completed return and send it to your spouse to sign and mail, or obtain a power of attorney to allow you to sign for your spouse.
• Marriages and divorces can be timed to assure both parties will save on their taxes.
• Single- Use this status if you are unmarried or separated from your spouse (by divorce or separate maintenance) and do not qualify for any other filing status. (See also Head of Household and Qualifying Widow(er) with Dependent Child, which carry lower tax rates and higher standard deductions.)

Married Filing Jointly
You and your spouse may choose to file a joint return, which combines your incomes and allowable expenses. The tax rate may be lower and, if you do not itemize deductions, the standard deduction could be higher. You may be eligible to use this status even if your spouse died during the tax year.

Married Filing Separately
The tax rate for this status is higher. This status may benefit you if you choose to be liable only for your own tax or if both of you have high incomes or certain itemized deductions. If you use this status and one spouse itemizes deductions, the other must also itemize deductions. Certain credits such as the Earned Income Credit and the Credit for Child and Dependent Care are generally not allowed when you are Married Filing Separately.

Head of Household
This status applies if you are unmarried on the last day of the year and if, for more than six months of the tax year, you paid more than half the cost of the upkeep of a home for yourself and a qualifying person. Other tests apply for a married person to be considered unmarried for this status. Generally, your tax rate will be lower and your standard deduction higher than for Single or Married Filing Separately.

Qualifying Widow(er) with Dependent Child
If you are a widow(er) and you have a qualifying dependent, you may be able to use this filing status. You must have provided more than half of the cost of upkeep for you and your dependent's main home during the tax year and you must not have remarried before the end of the tax year. If this situation does not change, you may use this status for the two years following the death of your spouse.

Tax Tips
Nontaxable income
The list of nontaxable income deductions is long, to name a few: Child support, military allowances, veteran's benefits, welfare benefits, and workers' compensation. Please consult to your tax preparer for a more complete list.