How Does Filing Status Affect My Tax Refund?

What are your tax filing status options?

There are five tax filing statuses:

• Single
• Married filing jointly
• Married filing separately
• Head of household
• Qualifying surviving spouse

There’s a small chance that you might qualify for more than one filing status if you’re married, your spouse has died, and whether you have dependents or not. But it’s best to go with the status that could offer the maximum deductions and credits you qualify for.

How do you determine what IRS tax filing status you are?

The easiest way to understand what your filing status is by determining what your marital status is on the last day of the year. For example, if you get married in July, and are still married on December 31 – your filing status for the entire year can only be married filing jointly or married filing separately, even though you were single for the first half of the year. That goes for those getting a divorce, too. If you divorce on the last day of the year, you’re considered “not married” for the whole year. Even if married or divorced at 11:59 pm. on December 31 (near but not past midnight), this counts for the whole year.

Single filing status

Single filing status is for unmarried people that don't qualify for any other filing status. Simple as that.

Married filing jointly filing status

Married filing jointly is the most common filing status for married couples. This status has the highest standard deduction and some of the most beneficial tax rate brackets. You file together and report combined income, along with your combined deductions and qualifying credits on the same return. This way, the IRS holds both spouses accountable for all taxes due, including penalties and interest.

Important tax tip: If filing married filing jointly, you each are responsible for the total taxes – not just yours –so if you have concerns, it’s best to see a tax expert about some other choices you might have, including married filing separately.

Married filing separately filing status

Married filing separately is another option for married people to file. Though filing jointly is best in most cases, there are some situations when filing separately works out better – meaning possible lower taxes or other benefits you might want. Unlike married filing jointly status, where most things are simply added together, the married filing separately return includes only the taxpayer's income and deductions. If you and your spouse have vastly different income levels or vastly different deductions individually, this status might create a tax reduction opportunity and lower taxes. On a high level, this could be beneficial for those who have big differences in their earnings and expenses situation.

A few things to keep in mind about this status:

• It holds only the taxpayer on the return responsible for any taxes due and penalties and interest, not their spouse.
• It’s for people who don’t want to file a joint return, or whose spouse refuses to file a joint return--meaning you are not willing to file together. This is most common for those going through a divorce or separation.
• If you live in a Community Property State, you must follow the state rules for dividing income. The community property states are:
  • Arizona
  • California
  • Idaho
  • Louisiana
  • Nevada
  • New Mexico
  • Texas 
  • Washington
  • Wisconsin
• It potentially has the highest tax rate brackets, fewest allowed credits and deductions (for example, you can’t claim the Earned Income Tax Credit, American Opportunity Tax Credit, Lifetime Learning Credit, or the Child and Dependent Care Credit). It can also make more income taxable in many circumstances, such as for Social Security benefits.
• It also reduces your standard deduction amount to zero if the other spouse is itemizing deductions. As I said, it is not for everyone but does have a place in the tax ecosystem. If you’re interested, talk with a Tax Pro, and do not elect this status alone without knowing all the details.

Qualifying surviving spouse filing status

Qualifying surviving spouse is for people who have recently lost a spouse and are supporting a dependent child at home who is under 19, or 24 if they’re a full-time student or disabled. This filing status allows you to claim the married filing jointly standard deduction and to use the married filing jointly tax rates. If your partner passed away in the tax year, you can still file as married jointly for that year. You can only claim this status for the two years after the year of death if you have a dependent child.

Head of household filing status

Head of household is for unmarried people who provided at least half of the cost to maintain a home for the year for themselves and an eligible individual. The taxpayer must also provide more than half the support for a qualifying dependent for more than six months of the year. The main benefits of this filing status are a higher standard deduction and more taxable income falling into lower tax brackets.

Some examples of those who can claim the head of household filing status:

• Single parents who have a child living at home
• Adults who provide support to their elderly parents or relative under qualifying circumstances
• Separated couples with a dependent child who meet other qualifications

Many single taxpayers can file as head of household. Sometimes, no one provides more than half of the support of an individual. When this happens, a person who provides more than 10% of the support can claim the individual as a dependent by special agreement. This filing status can be complex, so talk to a Tax Pro before making the final decision.

Does my filing status impact what tax deductions and credits I can claim?

Yes. One of the biggest things your filing status impacts is what your standard deduction amount is. The standard deduction is a flat amount that reduces the amount of income on which you're taxed.

You can’t take the standard deduction if:

• You are married, but filing separately, with a spouse who itemizes deductions.
• You are an individual who files a tax return for less than 12 months because of a change in your annual accounting period.
• You are filing as an estate or trust, common trust fund, or partnership.
• You were a nonresident alien or a dual-status alien during the year.

Furthermore, there are dozens of tax benefits that have different requirements and benefit size amounts. Many of them change, based on your filing status itself. For example, if you are eligible for the Earned Income Tax Credit, the amount you can get changes if you’re single or married.

If you try to claim a credit or deduction under the wrong filing status, it can cause a delay in the IRS processing your return and in receiving your refund.

What are the tax brackets and rates?

Tax brackets adjust each year for inflation. But at a high level, there are seven federal income tax rates, meaning this is the percentage of your income you need pay: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Depending on your filing status, the tax brackets and rates are based on your total taxable income. 

Commonly asked questions about filing status options

Can I file head of household if I’m married?

Sometimes. You just must meet several requirements, like paying more than half of household expenses, you haven’t lived together for the last six months of the tax year and you have a dependent child who lived with you more than half the year.

Can I change my tax filing status at any time?

Yes, if you are considering a different filing status from the previous years you must meet the requirements for that unique filing status. If you have filed your taxes already during the year, you must amend your tax return to change your filing status. Note: you can only change from married filing jointly to married filing separately before the original due date of the return, generally April 15.

Can I file married filing separately if I’m still living with my spouse?

Yes. You just need to meet the other requirements and decide if this is a better option for you and your spouse.

How do I change my filing status?

If you are considering a different filing status from the previous years you must meet the requirements for that unique filing status. If you have filed your taxes already during the year, and want to change your filing status, you must file an amended tax return. Note: you can only change from married filing jointly to married filing separately before the original due date of the return, generally April 15.

What do I do if I filed under the wrong filing status?

File an amended return to correct the error. This could change your refund amount for that year – either by getting a bigger refund or having to pay the IRS back money you weren’t supposed to get. Remember, you can’t change from married filing jointly to married filing separately after the April 15 due date for your tax return.

Will I pay a penalty for changing my filing status?

No, there is no penalty for changing status, but your tax refund amount could change. 

About the Author

Mark Steber is Senior Vice President and Chief Tax Officer for Jackson Hewitt. With over 30 years of experience, he oversees tax service delivery, quality assurance and tax law adherence. Mark is Jackson Hewitt’s national spokesperson and liaison to the Internal Revenue Service and other government authorities. He is a Certified Public Accountant (CPA), holds registrations in Alabama and Georgia, and is an expert on consumer income taxes including electronic tax and tax data protection.

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