When a taxpayer files their tax return, they need to know their filing status. What folks should remember is that a taxpayer’s status could change during the year. So, any time is a good a time for a taxpayer to learn about the different filing statuses and which one is best for them.
Knowing the correct filing status can help taxpayers determine several things about filing their tax return:
- Is the taxpayer required to file a federal tax return or should they file to receive a refund?
- What is their standard deduction amount?
- Is the taxpayer eligibility for certain credits?
- How much tax they should pay?