Taxes seem to be one huge puzzle made by your enemy. Relax! The filing status is the easiest part of everything. It is the first check-box in your Form 1040. It is your tax identity. It defines your terms. It defines your obligations. It defines how much you pay.
The IRS is an unfriendly master. They have nothing to do with your feelings. They care about your marital status on December 31st of the previous year. It is the most important day in your life. If you are single, just mark the box “Single”. It is the status most students choose.
Don’t be misled by the words “Head of Household”. It sounds impressive and frightening. That is definitely not the case for you. You cannot call yourself a head of household just because you are living alone. You must pay more than half of the cost of maintaining the household and have one qualifying dependent – usually, it is your child or other relative.
Your parents may become a spoilsport in this case. If they provide you with financial support, they can take this right and claim you. You can also file your taxes independently. All you have to do is to mark the box “Someone can claim you as a dependent”. It hurts a little bit, but you can save some money for your parents and lose some college credits.
Don’t even bother with “Qualifying Surviving Spouse”. You are a student without any dependents, so this status doesn’t fit you. This is a status for people who have to deal with hard things. While you are studying and eating your ramen noodles, you don’t need this kind of energy.
IRS likes defining things. In this case, they define single people as unmarried or separated individuals. This is your way to go.
It is worth keeping in mind the filing status because this determines your standard deduction. As for 2023, it is $13,850 for single filers. This is the amount you don’t need to pay taxes on. Enjoy it!
Of course, some students get married too early. So, if you have been married before the stroke of midnight on December 31st of the previous year, you have two statuses to file – married filing jointly and married filing separately. The first option is better because it has lower tax rates, but the second one is much rarer and expensive.
Don’t overthink this! You either are a married individual or you are not. You either have children or you don’t. There is no gray area here.
In case you have been living with your partner during the whole previous year, but didn’t sign the license, you are a Single individual. Common-law marriages are recognized only in several states, and even there you need evidence.
Your filing status affects your tax bracket and your opportunities to receive certain benefits, such as Earned Income Tax Credit. This is free money for low-income taxpayers and it is especially huge if you have a child in this situation.
Your unusual student income sources don’t affect your filing status. You may have a W-2 from a job at a campus coffee shop and 1099 from freelancing, but your status applies to all of it anyway.
Don’t ever allow yourself to be told to file as a business. You are not a business, you are a human being. You don’t have any LLC or any C-Corp, you have your student ID.
Use the Interactive Tax Assistant on IRS website. This is a totally free program which asks you questions and gives you answers.
Don’t let your parents convince you to let them claim you for their tax benefit. Do the math and decide if it is worthwhile for you or not.
Filing status is not a personality test, it is your legal identity declaration. In case you make a mistake here, IRS will notice you, will correct your mistakes and even will charge you interest. They are not your friends, trust me.
Choose your status according to your life situation on December 31st of the previous year. Were you married or you weren’t? Were you taking care of someone else or you weren’t? Ask yourself questions and check the box. Go on living your life.
You already have a lot of things to think about – your exams, debts and social life, for example. Make one of them simple and easy – your filing status. It is absolutely clear.
Don’t let the tax software puzzle you. It will ask you the same question in five different ways. Be consistent, you know what is going on in your life, not a computer.
Still can’t understand which filing status suits you best? Call the IRS. Yes, really. They have a phone number and people to answer it. Surprisingly, they are really helpful. They want you to do everything correctly.
Your filing status is the basis of your return. Build it wisely, not on sand. It will save you lots of trouble in the future.
You are a student. Most probably you are single and broke. But it is okay. This is your status. Use it. File it. Get your refund. Buy a pizza. You deserve it.