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Filing Statuses for 2023, Summaries of Tax Legislation and Financial Law

University of Kansas (KU)Tax Legislation and Financial Law

Conclusion Choosing the correct filing status is a key step in preparing your tax return. It can affect everything from your tax bracket to your eligibility for credits and deductions. Be sure to review your personal situation each year to ensure you select the filing status that benefits you the most.

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2023/2024

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Filing Statuses for 2023
What is Filing Status?
Your filing status determines how much you owe in taxes, what tax brackets you fall under, and
what deductions or credits you can claim. The IRS recognizes several filing statuses, each with
different rules and benefits.
Types of Filing Statuses
1. Single: For individuals who are unmarried or legally separated as of the last day of the
tax year. This is the default status for individuals who don’t qualify for any other status.
2. Married Filing Jointly: For married couples who choose to file a single tax return
together. This is often the most beneficial filing status, as it allows for higher income
thresholds before moving into higher tax brackets.
3. Married Filing Separately: For married couples who choose to file separate returns.
This status may result in higher taxes due to the loss of certain credits and deductions,
but it might be beneficial in certain situations, like when one spouse has significant
medical expenses.
4. Head of Household: For unmarried individuals who provide a home for a qualifying
person (such as a child or dependent). This status provides a higher standard deduction
and more favorable tax brackets compared to filing as single.
5. Qualifying Widow(er) with Dependent Child: For a widow or widower who has a
dependent child and has not remarried. This status allows you to use the same tax
brackets as Married Filing Jointly for up to two years after your spouse’s death.
Why Filing Status Matters
Your filing status determines:
● Tax Bracket: Different filing statuses have different tax brackets and income thresholds.
● Standard Deduction: The amount you can deduct from your taxable income, which
reduces the taxes you owe. For example, in 2023, the standard deduction for single filers
is $13,850, while for married couples filing jointly it’s $27,700.
● Eligibility for Credits: Certain credits, like the Child Tax Credit and the Earned
Income Tax Credit, have different eligibility criteria based on your filing status.
How to Choose the Right Filing Status
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Filing Statuses for 2023

What is Filing Status?

Your filing status determines how much you owe in taxes, what tax brackets you fall under, and what deductions or credits you can claim. The IRS recognizes several filing statuses, each with different rules and benefits.

Types of Filing Statuses

  1. Single : For individuals who are unmarried or legally separated as of the last day of the tax year. This is the default status for individuals who don’t qualify for any other status.
  2. Married Filing Jointly : For married couples who choose to file a single tax return together. This is often the most beneficial filing status, as it allows for higher income thresholds before moving into higher tax brackets.
  3. Married Filing Separately : For married couples who choose to file separate returns. This status may result in higher taxes due to the loss of certain credits and deductions, but it might be beneficial in certain situations, like when one spouse has significant medical expenses.
  4. Head of Household : For unmarried individuals who provide a home for a qualifying person (such as a child or dependent). This status provides a higher standard deduction and more favorable tax brackets compared to filing as single.
  5. Qualifying Widow(er) with Dependent Child : For a widow or widower who has a dependent child and has not remarried. This status allows you to use the same tax brackets as Married Filing Jointly for up to two years after your spouse’s death.

Why Filing Status Matters

Your filing status determines:

● Tax Bracket : Different filing statuses have different tax brackets and income thresholds. ● Standard Deduction : The amount you can deduct from your taxable income, which reduces the taxes you owe. For example, in 2023, the standard deduction for single filers is $13,850 , while for married couples filing jointly it’s $27,. ● Eligibility for Credits : Certain credits, like the Child Tax Credit and the Earned Income Tax Credit , have different eligibility criteria based on your filing status.

How to Choose the Right Filing Status

Choosing the right filing status depends on your personal situation:

● Married couples may benefit from filing jointly, but Married Filing Separately can sometimes make sense if there are concerns about liability or large medical expenses. ● If you’re single with dependents, Head of Household could be the most beneficial status for maximizing your standard deduction and tax brackets. ● Widows/widowers with a dependent child should consider the Qualifying Widow(er) status to take advantage of more favorable tax rates.

Changes in Filing Status for 2023

For 2023, the rules for filing status remain largely the same. However, some income thresholds and deduction amounts have been adjusted for inflation. It’s important to review your options each year to ensure you’re selecting the status that minimizes your tax burden.