The 5 Tax Filing Status
If you want to save money on your taxes, it's important to know the different filing statuses and which one will benefit you the most. Here are the five tax filing statuses and when you should use each one.
The 5 Tax Filing Status
Tax filing can be confusing and time-consuming, but proper knowledge of the five available tax filing statuses can help you mitigate costly mistakes and save money on your tax return. Taxpayers may qualify for income tax filing with their status:
Single
Married Filing Jointly
married filing separately
Head of Household
Qualifying Surviving Spouse (New in 2023! Formerly qualifying widow(er) with a dependent child)
Knowing which category to choose can help maximize your potential tax savings. Taxpayers should consider factors such as income level and marital status when deciding how to file in order to get the best possible return outcome. It's never too late to educate yourself about the different options for your tax situation!
How to Choose the Right One for You
Selecting a tax preparer is not just a matter of going with your gut, or whomever your family and friends select. While gaining valuable recommendations from others is certainly a plus, you should still exercise due diligence by researching the options available to ensure that you’re making the best decision. Careful research is a must to ensure the qualified Tax Preparer you choose has the experience, credentials, and security measures in place for your confidential financial information. In addition, establish open communication between yourself and the Tax Preparer so that there are no areas of misunderstanding when it’s time to file your return Confidently make a selection knowing that you put considerable effort into securing the Tax Preparer that fits your situation best.
The Benefits of Each Status
Tax season can be a daunting task for many individuals and businesses, but having the proper status can make filing taxes easier. Tax preparers and other tax professionals are well-versed in the intricacies of the US Tax Code and use their expertise to help others get their taxes done quickly and accurately. Taxpayers who choose to go through a Tax Preparer benefit from having an experienced set of eyes looking over their files. On the other hand, Tax Professionals have an in-depth knowledge of the Tax Code which allows them to provide valuable advice beyond just preparing your return. Whether you choose a Tax Preparer or Tax Professional, being aware of the benefits they offer can help alleviate some of the stress brought on by tax season.
Which Status Saves You the Most Money
Experiencing the financial tug-of-war between wanting quality and needing to save money? Then understanding your status can play a major role in popping out victorious - it's all about maximizing rewards while minimizing costs. From discounts at popular retail stores to waived fees on accounts, knowing which status can do what is going to be the difference between a great deal and reaching for your wallet again too soon. If you really want to get ahead of the game, using multiple statuses at once may just be the ticket to slashing your expenses. After all, why choose one when you could make them work for you?
How to Change Your Tax Filing Status
Tax season can be daunting, but one of the best ways to make it more manageable is to understand your filing status. Unbeknownst to many taxpayers, altering from one filing status to another can often result in better tax benefits and lead to larger refunds. Don't let a witty IRS agent surprise you by suggesting a change: brush up on how your filing status affects your taxes and decide for yourself if a change is right for you.
Now that you understand the 5 tax filing status options available to you, it’s time to choose the right one for your unique financial situation. The benefits of each status vary, so be sure to do your research and talk to a professional before making any decisions. Keep in mind that the goal is to save money wherever possible, so choose the option that will help you do just that. And if you need help along the way, we’re here for you. Our team of experts is ready and waiting to answer all of your questions and help get your taxes done right. So what are you waiting for? Give us a call or fill out our online form today to set up an initial tax consultation – we’ll take care of the rest. Good luck and happy filing!
