Determining filing statuses for your clients

As tax professionals prepare clients to file 2025 tax returns in 2026, understanding filing statuses remains a cornerstone of accurate preparation and optimized outcomes. Accurate filing status selections affect standard deductions, tax rates, eligibility for credits and calculated liabilities. For the 2025 tax year, these decisions are especially consequential given the substantial changes introduced under the One Big Beautiful Bill Act (OBBBA), enacted July 4, 2025.

Filing status generally places taxpayers into the following categories: single, married filing jointly, married filing separately, head of household and qualifying surviving spouse with dependent child. See Publication 501 for more information. Each status carries its own rules, thresholds and strategic implications. Under the 2025 tax tables, many of the familiar structures remain, but updated standard deductions and rules influenced by OBBBA require careful client assessment.

Why filing status matters

Filing status determines a taxpayer’s filing requirements, standard deduction eligibility, tax bracket thresholds and eligibility for many credits and other benefits. For most clients, filing status is straightforward. But complex life events like marriage, divorce, death of a spouse, child custody changes and qualifying dependents can make selections less intuitive.

Selecting the wrong status can cost both clients and professionals time and money. It can result in improperly calculated taxable income, missed credits and even penalties. For example, heads of household receive higher standard deductions and favorable tax brackets than single filers, but eligibility depends on specific criteria related to dependents and household support. It is imperative for tax professionals to confirm eligibility before recommending status.

Standard deduction under the new tax law

OBBBA permanently extended the expanded standard deductions enacted under the 2017 Tax Cuts and Jobs Act and increased them for the 2025 tax year. These amounts apply based on filing status and provide substantial reductions in taxable income. For 2025, the standard deductions are:

• $31,500 for married taxpayers filing jointly (MFJ) and surviving spouses
• $23,625 for heads of household
• $15,750 for single taxpayers and married taxpayers filing separately

These amounts are significantly higher than the pre-2018 levels and reflect the permanent statutory enhancements under OBBBA. Tax pros should integrate these updated figures into client projections to ensure accurate withholding adjustments and estimated payments throughout the year.

Clients aged 65 or older may be eligible for additional deductions. A new senior deduction under OBBBA allows eligible taxpayers to claim an additional above-the-line deduction of up to $6,000 for single filers and $12,000 for married couples where both spouses qualify, subject to income-based phaseouts. This deduction applies even if a taxpayer claims the standard deduction, offering planning flexibility for older clients with substantial Social Security or retirement income.

Filing status and credits impacted by OBBBA

Several key credits and deductions also tie directly to filing status and may affect client decisions:

• The child tax credit now stands at $2,200 per qualifying child under age 17 and becomes permanent starting in 2025, subject to income phaseouts that differ by filing status. Reporting valid Social Security numbers is required for eligibility, and MFJ returns must include at least one spouse’s SSN.
• The credit for other dependents is permanently retained at $500 and applies to dependents who do not qualify for the child tax credit. Filing status can determine eligibility phaseouts and refundability.
• The child and dependent care credit and some other personal credits can vary by status, and professionals should review these line by line during preparation.

Tax professionals must closely review the interplay between filing status, deduction limits and credit eligibility when advising clients. Even a few thousand dollars difference in adjusted gross income (AGI) can alter the phaseout range for credits and deductions.

Common filing status challenges

Certain common scenarios often require deeper analysis:

• Married couples filing separately (MFS) may claim this status for non-tax reasons, such as separate liabilities or legal arrangements. However, MFS can disqualify clients from certain credits and result in higher tax rates.
• Head of Household (HOH) status often produces lower tax liability than single status. To qualify, a client must be unmarried as of the last day of the year, have paid more than half the cost of maintaining a home and have a qualifying dependent. Many filers mistakenly assume qualification; thorough documentation is essential.
• Qualifying surviving spouse status allows an extended period of joint filing benefits for up to two years after a spouse’s death if a dependent is maintained in the home. This status can yield more favorable tax outcomes than single status.

Getting ahead before filing season

Clients benefit when professionals review filing status early, ideally before year-end. Planning can alter tax liability materially, particularly for clients whose status might shift with life events or whose income hovers near key thresholds.

For example, married couples approaching divorce or separation should understand how timing affects status and applicable deductions. Similarly, taxpayers considering whether to claim a dependent need clarity on how that choice influences status and credit eligibility.

The 2025 tax year presents new complexities. To help you confidently serve clients, we are hosting a detailed webinar, Determining Filing Statuses for Your Clients, on Feb. 3. This session will explore real-world scenarios, IRS guidance, and planning strategies you can apply immediately during preparation and client consultations.

Secure your spot in the webinar to deepen your practical knowledge and position your practice for success when tax season arrives.