By Ashlee Ogrzewalla, CFP®, CFDA®, Vice President and Manager of Financial Planning & Marketing
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Selecting the appropriate tax filing status is pivotal in preparing your federal income tax return. Your chosen status influences your tax bracket, standard deduction, eligibility for certain credits and deductions, and ultimately, your tax liability. For the 2024 tax year, it’s essential to understand the nuances of each filing status to optimize your tax situation.
The Five Filing Statuses
The IRS recognizes five primary filing statuses:
- Single: For individuals who are unmarried, divorced or legally separated as of December 31, 2024.
- Married Filing Jointly: For married couples who choose to combine their income and deductions on a single tax return.
- Married Filing Separately: This is for married individuals who opt to file separate tax returns.
- Head of Household: This is for unmarried individuals who pay more than half the cost of maintaining a home for themselves and have qualifying dependents.
- Qualifying Surviving Spouse (formerly Qualifying Widow(er)): For individuals whose spouse died in 2023 or 2024 and who have a dependent child.
1. Single
Who Qualifies: Unmarried individuals who do not qualify for another filing status.
Considerations: The standard deduction for single filers in 2024 is $14,600. While this status is straightforward, it is important to evaluate whether you qualify for a more advantageous status, such as Head of Household, which offers a higher standard deduction.
2. Married Filing Jointly
Who Qualifies: Married couples who are legally married as of December 31, 2024.
Benefits: This status often results in a lower tax liability due to wider tax brackets and a higher standard deduction of $29,200 for 2024. Additionally, couples filing jointly may be eligible for various tax credits and deductions not available to those Filing separately.
Considerations: Both spouses are jointly responsible for the accuracy of the return and any tax liability. Suppose one spouse has significant medical expenses, miscellaneous or other itemizable deductions. In that case, it may be beneficial to calculate taxes both jointly and separately to determine the most advantageous approach (NerdWallet: Finance smarter).
3. Married Filing Separately
Who Qualifies: Married individuals who choose to file separate tax returns.
Reasons to Choose This Status:
- One spouse prefers to be solely responsible for their own tax liability.
- To separate tax obligations when there is concern about the accuracy of the other spouse’s tax reporting.
- One spouse has significant itemizable deductions, such as high medical expenses, that could result in a lower tax liability if filed separately.
Considerations: The standard deduction for this status is $14,600 in 2024. However, this filing status limits the ability to claim certain benefits, including the credit for the elderly and disabled, the earned income credit (some exemptions may apply), and the child and dependent credit. Also, choosing this filing status excludes the deduction for student loan interest, and a person’s ability to contribute to a Roth IRA may be limited (KPMG, 2025 Tax Guide).
4. Head of Household
Who Qualifies: Unmarried individuals who pay more than half the cost of maintaining a home for themselves and a qualifying dependent, such as a child or certain relatives.
Benefits: This status offers a higher standard deduction of $21,900 for 2024 and more favorable tax brackets compared to the Single status.
Considerations: Strict qualifications must be met, including maintaining the household for a qualifying person. Ensuring eligibility is crucial to avoid complications with the IRS.
5. Qualifying Surviving Spouse
Who Qualifies: Individuals whose spouse died in 2023 or 2024 and who have a dependent child living with them.
Benefits: This status allows the surviving spouse to use the Married Filing Jointly tax rates and standard deduction ($29,200 for 2024) for up to two years following the spouse’s death, provided they have not remarried and have a dependent child.
Considerations: This status provides temporary tax relief during a challenging time. After the two-year period, it’s important to plan for the transition to a different filing status.
Impact on Standard Deductions and Tax Brackets
Your filing status directly affects your standard deduction and the income thresholds for tax brackets. For 2024, the standard deductions are:
- Single: $14,600
- Married Filing Jointly: $29,200
- Married Filing Separately: $14,600
- Head of Household: $21,900
Understanding these amounts is essential for accurate tax planning and optimizing potential refunds. Consult with your financial advisor and a tax professional to analyze your unique situation and determine the most advantageous filing status for 2024.
IMPORTANT DISCLOSURES: The information provided is based on internal and external sources that are considered reliable; however, the accuracy of this information is not guaranteed. This piece is intended to provide accurate information regarding the subject matter discussed. It is made available with the understanding that Benjamin F. Edwards is not engaged in rendering legal, accounting or tax preparation services. Specific questions on taxes or legal matters as they relate to your individual situation should be directed to your tax or legal professional.