It doesn’t take an expert Overland Park CPA to know that if you make $75,000 a year, you will not get to keep all of that money. When you look at your paystub after each pay cycle, you will see that your income gets sent to a few other places besides our bank account. But how is this amount calculated for each paycheck?
As one of the top companies specializing in payroll services in Overland Park, Louisburg-based Pro 31 Tax and Accounting is your source for all your questions regarding taxes on your paycheck. This article will help give you a better understanding of the five different filing statuses, and which one may be best for you.
If you are unmarried at the end of the calendar year, your filing status is “Single.” If you claim a dependent, your status may be changed to “Head of Household,” which we’ll explain more in the next paragraph.
Head of Household
For those that are unmarried and pay for more than 50% of the costs of keeping a home and have a qualifying person, you may be eligible to file as “Head of Household.” If you ask a CPA in Overland Park the biggest benefit is of being Head of Household, they’ll likely tell you that it means a lower tax rate than filing as “Single.”
Widow/Widower with Child
If you have experienced the loss of a spouse and have a child, you can file under “Qualifying Widow/Widower with Dependent Child” status. During the initial year following the loss of a spouse, you can file under this status and continue receiving the same standard deduction and federal tax rates as married couples that file jointly. According to Overland Park tax preparation services, (such as Pro 31 in Louisburg) this status can be claimed for a total of two years.
Married, but Filing Jointly
You can file with your spouse or separately, depending on what situation suits you best. Overland Park CPAs suggest filing jointly to experience more federal tax benefits. However, filing separately does make more sense for some married couples.
Married, but Filing Separately
The least amount of tax benefits goes to those who file under “Married Filing Separately” status. Before filing under this status, it is highly recommended to speak to an Overland Park tax preparation expert to see if this the best status for your family’s situation. Filing separately is a common option for spouses that are separated and are not yet officially divorced.
If you have any other questions and need the assistance of a payroll accountant in Overland Park, give Pro 31 Tax and Accounting a call. Every Pro 31 team member is based at our Louisburg office and has over ten years of accounting experience, with special emphasis in all your tax, payroll, accounting, and filing needs in Overland Park.
Give our Louisburg office a call at (913) 837-3131 or contact us online today.