The five different filing statuses recognized by the IRS are as follows.
Single – according to the IRS your filing status is single if you are either unmarried or legally separated from a former spouse on the last day of the tax year. Therefore if you were legally single on or before December 31st, 2007 then you will need to file as single on your tax return.
Married Filing Jointly – in order to be considered married by the IRS a man and woman must have their marriage legally recognized by the federal government. You can choose to file jointly if you and your spouse agree to file a joint return. However, you will include all combined income, exemptions, and deductions on your return.
Married Filing Separately – if you are married you can also chose to file Married Filing Separately. However, this status generally has the highest tax liability and couples can often save hundreds by choosing to file a joint return. If you are unsure if you would be better off filing separated or jointly then you may want to speak to a tax professional.
Head of Household – if you qualify to file as a Head of Household your tax liability will likely be lower then filing as Single. However you must meet certain criteria such as having a qualifying individual live in your household for more than half the year.
Qualifying Widow(er) with Dependent Child – in order to qualify for this filing status you must have a qualifying dependent child for two years following the year your spouse died.
Once you are legally married, you can no longer file as single. You must file either Married Filing Jointly, Married Filing Separately, or Head of Household. Please keep in mind that there are tax consequences that arise from being married. If only one spouse earns a salary then you actually get a marriage bonus. However, if both people are wage earners, then you face the marriage penalty. This is because when you file jointly your income is taxed at your highest marginal rate.
In 2003, Congress attempted to fix the marriage penalty with an increase in the standard deduction for married couples filing jointly. The amount was increase to $9,700 for the 2004 tax year, then to $10,000 for the 2005 tax year.
Upon getting married, there are a number of things you will need to consider for tax purposes. First of all, one person is probably going to need to change their address and/or name with the IRS and Social Security Administration. To do so you will need to file form SS-5 with the Social Security Administration and IRS Form 8822 with the federal government.
