The amount of taxes you pay for a given year are subject to many varying exceptions and changes based on your marriage status and the number of dependents you claim. Here are some common tax alterations you may face, based on the statuses you can use to file.
Changes Based on Marriage
If you are married or have been married at some point during the year for which you are filing, according to IRS information, you may file your taxes as either married filing jointly (a joint form with your spouse) or married filing separately from your spouse. The terms of taxation vary based on your filing status.
- The married filing jointly status can sometimes have the benefit of lowering income tax liability.
- One aspect of filing jointly that some find risky is that both partners signing the form are held accountable for subjected taxes.
- The married filing separately status makes each individual in the marriage separately responsible for their own income taxes, which can be beneficial if you feel more assured with control over your own finances.
- Married filing separately can also raise one individual’s taxes based on certain expenses.
- If you are married at any point in a given year, you are required to file your taxes with a married status, whether joint or separately.
- You may also file as head of household if you are married or as qualifying widow or widower if your spouse is deceased.
Changes Based on Dependents and Children
You may also be eligible for certain tax exemptions of tax credits if you can claim eligible dependents when you file your taxes.
- You may receive tax credits if you have had to pay expenses related to childcare in the year, such as paying a childcare provider or business that provides childcare.
- You may also receive tax credits if you file your qualifying children (if originally filed when they are under the age of 13) or individuals who depend on you financially, although there are certain exceptions and qualifications you must meet in order to receive these benefits.
- You can also claim certain tax exemptions from your paychecks based on the number of eligible dependents you claim.
When filing your taxes, it is essential to consider your status as an individual in order to decide which filing statuses will work best for you and benefit you most financially.
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