Definition
Filing status is the category that determines your tax brackets, standard deduction, and eligibility for certain credits.
How It Works
The main statuses are single, married filing jointly, married filing separately, head of household, and qualifying surviving spouse. Each carries its own bracket thresholds and standard deduction amount.
Example
A married couple usually pays less filing jointly than separately, though separate filing occasionally helps in specific situations such as large medical deductions.
Who It Applies To
Every taxpayer.
Watch-Outs
Choosing the wrong status, or overlooking head of household eligibility, can cost real money.
