tax status
Definition
Filing status chosen by an individual or business when filing taxes. An individual can choose to file single, married filing jointly, married filing separately, or head of household. A business can choose to file C corporation, S corporation, limited partnership, limited liability corporation (LLC), or sole proprietorship. A taxpayer may fall into more than one category, and in which case can attempt to figure out which status will provide the best outcome.
Use tax status in a sentence
“ I wondered what his tax status was and he let me know it and it surprised me because it was different than I thought. ”
“ Changing their tax status to "married filing jointly" made a huge difference on the amount owed in taxes on John and Mary Smith's tax return. ”
“ After the got married, they knew they would have to change their tax status. While they used to file single before, now they would need to file married. ”
