It’s that time of year again when everyone begins to collect their paperwork, end-of-year forms, and review all financial implications from the prior year in an attempt to prepare for filing taxes. For some, earning income throughout the year and paying taxes or quarterly estimates results in an overpayment and thus, a refund is issued. However, for some, depending on their particular circumstances - money may be owed to the Internal Revenue Service (IRS) once a return is completed.
No matter your situation, each and every tax return begins with what appears to be a simple question but actually should be given considerable thought before proceeding. Everyone knows they are responsible for filing, but what status should they file under in order to receive the best benefit? With over 155 million returns filed last year, this is one question asked of every single person turning in a return with five distinct answers from which to choose.
Unmarried individuals or those legally separated from a spouse at the conclusion of the preceding year may file a return designated as Single. However, if you are currently married or were at any portion of the previous year - even if only for one day, then another selection must be made.
MARRIED FILING JOINTLY
Married filing jointly combines the income of two individuals and may result in an increased standard deduction or other tax incentive. A majority of the time this option is best for couples although there are exceptions.
For those particular instances, married filing separately is the next best option. With this method, each individual is responsible for their own tax situation and the two remain separate from one another. Although a number of tax breaks are negated by filing separate, there are varying circumstances where this option may be the best option for you or your spouse.
HEAD OF HOUSEHOLD
Single parents and others may qualify to file as Head of Household. Often, these particular situations involve a former couple and thus there are rules for claiming the Head of Household filing status.
QUALIFYING WIDOW(ER) w/ DEPENDENT CHILD
If your spouse passed in the year prior and there is a dependent child or children involved, this status applies. Although unique to specific scenarios, the option is available to adjust certain factors which would be applied differently under another status type.
If you’re ready to file a return and need help determining exactly which status applies to your given situation then let Denver's tax professionals
at Bloch Rothman and Associates assist you today. In addition to providing answers for how you should file, they can also take care of multiple other issues dealing with paying or owing back taxes, required audits signaled by either the IRS or an outside agency, or any other personal or corporate wealth management issues. Along with providing a quality tax service, our group can also complete all types of returns or answer any other factors associated with financial issues or concerns you may have. Serving Denver and all of the surrounding areas for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate, or any other filings, don’t hesitate to contact us today. Available for all of your tax needs, there are also a number of bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and providing the type of service you can rely on whatever your needs may be very soon!