Filing Status and Tax Brackets

Your filing status is one of the most important determinations on your tax return. It affects your tax bracket thresholds, standard deduction amount, eligibility for credits, and more. Filing status is generally determined on the last day of the tax year (December 31 for calendar-year taxpayers).

The Five Filing Statuses

1. Single

Requirements:

• Unmarried on the last day of the tax year, AND
• Do not qualify for any other filing status

When it applies:

• Never married
• Legally separated under a decree of divorce or separate maintenance
• Widowed and remarried before year-end

2025 Standard Deduction: $15,750

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2. Married Filing Jointly (MFJ)

Requirements:

• Married on the last day of the tax year, OR
• Spouse died during the year and you have not remarried

Advantages of MFJ:

• Widest tax brackets (highest income before reaching higher rates)
• Highest standard deduction ($31,500 in 2025)
• Eligibility for more credits (Earned Income Credit, education credits with higher phase-out thresholds)
• Can claim deductions for both spouses' expenses

Disadvantages:

• Joint and several liability - Each spouse is responsible for the entire tax liability, including penalties and interest, even if only one spouse earned the income or made an error
• May result in "marriage penalty" for two high earners

2025 Standard Deduction: $31,500

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3. Married Filing Separately (MFS)

Requirements:

• Married on the last day of the tax year, AND
• Choose not to file jointly

When MFS may be advantageous:

• One spouse has significant medical expenses (7.5% AGI floor is lower with separate income)
• One spouse has significant miscellaneous expenses
• Liability concerns (avoiding joint and several liability)
• One spouse suspects the other of tax fraud
• One spouse has defaulted student loans (to protect the other's refund)

Significant limitations of MFS:

• Cannot claim Earned Income Credit
• Cannot claim education credits (AOTC, LLC)
• Child Tax Credit phaseout begins at $200,000 (same as single, not $400,000 like MFJ)
• Social Security benefits: Up to 85% taxable regardless of income (no threshold protection)
• Roth IRA contributions: Phase-out begins at $0 if living with spouse
• Must both itemize or both take standard deduction

2025 Standard Deduction: $15,750

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4. Head of Household (HOH)

Requirements - ALL must be met:

1. Unmarried (or considered unmarried) on the last day of the tax year
2. Paid more than half the cost of maintaining a household
3. Qualifying person lived with you for more than half the year (exceptions for parents)

Qualifying Persons:

• Qualifying child (as defined for dependency)
• Qualifying relative who is your parent (need not live with you, but you must pay more than half their household costs)
• Qualifying relative who lived with you more than half the year

"Considered Unmarried" Rules: A married person can file as HOH if:

• Lived apart from spouse for the last 6 months of the year
• Paid more than half the household costs
• Home was the main home of a dependent child for more than half the year
• Would be entitled to claim the child as a dependent (or released the claim to the other parent)

2025 Standard Deduction: $23,625

CFP Exam Tip: HOH provides wider brackets than Single and a higher standard deduction, but narrower brackets than MFJ. It's a middle ground for unmarried taxpayers with dependents.

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5. Qualifying Surviving Spouse (QSS)

Also known as: Qualifying Widow(er) or Surviving Spouse

Requirements - ALL must be met:

1. Spouse died in one of the two preceding tax years
2. Have not remarried
3. Have a dependent child (not just any dependent)
4. Paid more than half the household costs
5. Could have filed jointly the year spouse died

Duration: Available for the 2 years following the year of death

• Year of death: File MFJ (if spouse died during year)
• Year 1 after death: May file as QSS
• Year 2 after death: May file as QSS
• Year 3 after death: Must file as Single or HOH

2025 Standard Deduction: $31,500 (same as MFJ)

Example: If a spouse dies in 2025:

• 2025: File MFJ (joint return with deceased spouse)
• 2026: File as QSS (first eligible year)
• 2027: File as QSS (second eligible year)
• 2028: File as Single or HOH (QSS no longer available)

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2025 Standard Deduction Summary

Additional Standard Deduction for Age 65+ or Blind

Example: A married couple filing jointly, both over 65, neither blind: $31,500 + $1,600 + $1,600 = $34,700 total standard deduction

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2025 Federal Income Tax Brackets

The U.S. uses a progressive tax system with seven marginal tax rates. The income thresholds differ by filing status.

Single Filers

Married Filing Jointly

Married Filing Separately

Head of Household

Qualifying Surviving Spouse

QSS taxpayers use the same tax brackets as Married Filing Jointly.

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Filing Status Comparison Chart

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Planning Considerations

When to Choose MFJ vs. MFS

Choose MFJ when:

• Combined tax is lower (most common scenario)
• Need to claim education credits
• Need to claim Earned Income Credit
• Both spouses have similar incomes
• No liability concerns exist

Consider MFS when:

• One spouse has high medical expenses relative to their income
• Liability protection is needed
• One spouse has defaulted student loans
• State tax considerations favor separate filing

Marriage Penalty vs. Marriage Bonus

• Marriage Bonus: Occurs when one spouse earns significantly more than the other—combined income is taxed in wider brackets than if single
• Marriage Penalty: Occurs when both spouses have similar high incomes—combined income pushes into higher brackets faster than two single filers

Head of Household Qualification Traps

Common exam traps for HOH:

• Taxpayer must be legally unmarried or meet "considered unmarried" test
• The qualifying person generally must live with the taxpayer more than half the year
• Exception: A parent can be the qualifying person without living with you, but you must pay more than half of their household expenses
• Paying rent does not count as "maintaining a home" for the landlord's benefit