
When preparing your taxes, one of the first questions that you or your tax professional has to determine is what is your tax filing status. This can have a big impact on the amount of taxes that you pay and what credits you qualify for. Here is a breakdown of the most common filing statuses that are available:
Single - If you have never been married or are divorced and don’t have any qualifying dependents, then this will likely be the filing you would qualify for. Your standard deduction (amount that your taxable income is reduced by) is $14,600.
Married Filing Jointly - Legally married people would typically use this filing status. The standard deduction is $29,200.
Married Filing Separately - If you are legally married, you can also file separately but it usually leads to less credits and overall paying more in taxes. There are only very specific and few reasons why someone would select this filing status. The standard deduction is $14,600.
Head of Household - If you are not married and have a qualifying dependent, you may be able to use this filing status. The benefit of this is that it has a higher standard deduction at $21,900 that usually leads to lower taxes.
Be careful with the filing status that you select. This is one of the most common mistakes that people make with their taxes. For more information about filing status, you can visit this IRS website or give us a call. We remind you that one of the services that InVision Insurance offers is tax preparation so if you need help with your taxes, please give us a call at (323) 773-4429 for more information or to make an appointment. We charge $100 per tax submission.
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