Married Tax Withholdings Vs. Head of Household or Family
Taxes are inevitable. While you have to pay your fair share, choosing the correct filing status can ensure that you don't pay more than you really owe.
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Married Choices
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Married couples can choose to file taxes jointly or separately. When filing jointly, you and your spouse combine your incomes and allowable deductions. The IRS allows joint filing even if one spouse has no income. Typically, taxes are lower with this filing status than the combined totals of filing separately.
Married Filing Separately
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You may opt to file a separate return even if you're married. With this filing status, you are only responsible for your own tax liability. You are required to use this status if you're married but don't agree to file a joint return. Tax rates are usually highest in this category.
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Considerations
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In addition to higher tax rates when you select the "married filing separately" status, you give up many credits and other tax benefits. When you elect to file jointly, your standard deduction may increase and you might qualify for other benefits not available with other filing statuses.
Head of Household Status
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The head of household status usually results in the lowest tax rates. Besides paying the lowest rates, you can claim a higher standard deduction than either of the married status categories. The higher deduction additionally leads to less tax due to the IRS.
Requirements
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The IRS has specific requirements in order to file as head of household. You must be unmarried by IRS standards, have paid for more than half of your home's upkeep during the tax year, and had a qualifying individual live with you for more than half the year. IRS Publication 501 explains the guidelines in depth and can be found in the reference section.
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