How the tax return status relates to deductions in 2021 and 2022



miodrag ignjatovic /

Tax season is fast approaching and as you prepare, it’s important to know your tax filing status. Deposit status is used to determine your deposit requirements, the amount of your standard deduction, available credits, and the tax rate applied to your taxable income. Your filing status will determine what you owe in taxes and whether or not you have to file a return.

Stimulus Update: November Child Tax Credit, Maine AGI Checks, and Golden State Checks for Social Security Recipients
Tax brackets 101: here are the basics you need to understand

There are five tax reporting statuses. These include:


This status applies to single, divorced or legally separated taxpayers. If your divorce was granted before the last day of the year, you can file your application as single or head of household for the year in which the divorce was granted.

Standard deduction: Single taxpayers are entitled to a deduction of $ 12,550 for tax year 2021 and a deduction of $ 12,950 for tax year 2022.

Married Joint deposit

Married taxpayers can file a tax return jointly if they got married before December 31 of the same year. If a spouse dies, the living spouse can file a joint return for that year. Marriage can give taxpayers access to certain tax credits, a larger standard deduction, and a larger capital loss deduction. Combined income can also potentially bring higher income into a lower tax bracket.

Tax brackets 101: what is the marriage penalty and when does it affect you the most?

Standard deduction: Married taxpayers filing jointly are eligible for a deduction of $ 25,100 for tax year 2021 and a deduction of $ 25,900 for tax year 2022.

Married Filing separately

Married taxpayers can also choose to file their taxes separately. In this situation, a spouse would only report their own income, deductions and credits. While it may look like a single spinner, there are some differences. For example, if one spouse details the deductions, the other spouse must also do so.

According to the IRS, you can generally pay more combined taxes on separate returns than on a joint return. For example, a married taxpayer filing separately may not have access to the earned income credit, dependent credit, education credits, and student loan interest deduction.

Learn: Are Child Tax Credit Payments Taxable?

Standard deduction: It is the same as for a single declarer. Married taxpayers filing separately are eligible for a deduction of $ 12,550 for tax year 2021 and a deduction of $ 12,950 for tax year 2022.

Head of household

Unmarried taxpayers can use this filing status if they meet specific IRS guidelines. They must have paid more than half the cost of maintaining a household for themselves and an eligible person living in the house for half of the year.

Standard deduction: Head of household taxpayers are entitled to a deduction of $ 18,800 for tax year 2021 and a deduction of $ 19,400 for tax year 2022.

Eligible widow (s) with dependent child

This may apply if a spouse has died within the past two years and has a dependent child, stepson or adopted child and has not remarried.

Retirement 2022: IRS announces new COLA guideline, 401 (k) income limit increases and IRA
Explore: Experts Explain the Potential Tax Pitfalls of Seasonal Holiday Concerts

Standard deduction: This is the same deduction as the tainted joint deposit. An eligible widower or widower is entitled to a deduction of $ 25,100 for tax year 2021 and a deduction of $ 25,900 for tax year 2022.

More from GOBankingTaux

About the Author

Joséphine Nesbit is a freelance writer specializing in real estate and personal finance. She grew up in New England but is now based in Ohio where she attended Ohio State University and lives with her two toddlers and her fiance. His work has been published in print and online publications such as Fox Business and Scotsman Guide.



Comments are closed.