01/26/2022
How a Taxpayer’s Filing Status Affects Their Tax Return ❗
A taxpayer’s filing status tells the IRS about them and their tax situation. This is just one reason taxpayers should familiarize themselves with each option and know their correct filing status. INSPIRE INC can help them determine their filing status.
A taxpayer's filing status typically depends on whether they are considered unmarried or married on Dec. 31, which determines their filing status for that entire year.
More than one filing status may apply in certain situations. If this is the case, taxpayers can usually choose the filing status that allows them to owe the least amount of tax.
When preparing and filing a tax return, filing status determines:
🟣If the taxpayer is required to file a federal tax return
🔵If they should file a return to receive a refund
🟣Their standard deduction amount
🔵If they can claim certain tax credits
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