- The Wisdom Journal - http://www.thewisdomjournal.com/Blog -
How To Pick The Best Tax Filing Status
Posted By Ron On January 14, 2013 @ 6:00 AM In Taxes,Tips & Techniques | Comments Disabled
Choosing the best tax filing status based upon your personal circumstances is a critical aspect in filing your tax return. Making the correct choice will determine how much you pay in taxes and will also determine whether you qualify for certain tax deductions or exemptions . In many cases, your tax filing status is determined by your marital status though there are certain personal situations where you may qualify for two or more tax filing statuses. The good news is that the IRS allows you file under the status that offers you the best tax advantage (i.e. the status that lowers your tax liability the most). In my experience, using a tax software package such as TurboTax  will easily help you evaluate which filing status lowers your tax obligations the most.
If your marital status changed during the year, it can be confusing which filing status to use on your tax return – especially if you aren’t using TurboTax  or H&R Block.
Here are a few tips to help you choose the best tax filing status for your individual situation: