Life can be full of twists and turns, and sometimes those twists and turns affect something as fundamental as your tax filing status. Maybe you got married, divorced, had a baby, or perhaps you simply realized you made a mistake when you originally filed. Whatever the reason, if you need to change your filing status on TurboTax, you've come to the right place! It might seem like a daunting task, but with this step-by-step guide, you'll navigate the process with confidence.
Let's dive in and get your tax situation straightened out!
Understanding Your Filing Status: Why It Matters
Before we get into the "how-to," it's crucial to understand why your filing status is so important. Your filing status directly impacts:
Your standard deduction amount: This is a set dollar amount that reduces your taxable income if you don't itemize deductions. Different filing statuses have different standard deduction amounts.
Your tax brackets: The income ranges that are taxed at different rates vary significantly depending on your filing status. A change in status can mean you fall into lower or higher tax brackets, impacting your overall tax liability.
Eligibility for certain credits and deductions: Many tax credits and deductions have income limitations or specific requirements tied to your filing status. For instance, Head of Household status offers a larger standard deduction and more favorable tax brackets than Single.
A single error in your filing status can lead to a smaller refund or even an unexpected tax bill. That's why correcting it is so vital!
Changing Your Filing Status on TurboTax: A Step-by-Step Guide
The process of changing your filing status on TurboTax depends on whether you have already filed your return or not. We'll cover both scenarios.
Scenario 1: You HAVEN'T Filed Your Tax Return Yet
This is the easiest scenario! If you realize you need to change your filing status before you've hit that "file" button, you can simply go back into the "My Info" section of TurboTax.
Step 1: Let's Get Started! Access Your TurboTax Account
First things first, log in to your TurboTax account where you've been preparing your current year's tax return. This is your command center for all things tax-related within TurboTax.
Step 2: Navigate to the "My Info" Section
Once you're logged in:
Look for the "My Info" tab or section on the left-hand navigation bar (in TurboTax Online). If you're using the desktop version, it will also be prominently displayed.
Click on it. This section is where all your personal and household information resides, including your filing status.
Step 3: Review and Edit Your Personal Information
Within the "My Info" section, you'll see a summary of your personal details.
Find your name and click "Edit" next to it.
You'll then be guided through a series of screens that ask questions about your household and marital status as of December 31st of the tax year you're working on.
Carefully answer these questions. TurboTax uses your responses to determine which filing statuses you qualify for. For example, if you indicate you were married, it will then prompt you to choose between "Married Filing Jointly" or "Married Filing Separately."
If you're unsure which status applies, TurboTax will often provide helpful explanations or direct you to IRS guidelines. Don't rush this part!
Step 4: Confirm and Continue to Update Your Status
Once you've answered the relevant questions, TurboTax will automatically update your filing status. You'll likely see the new status reflected in your tax summary, and your estimated refund or tax due will adjust accordingly.
Review the changes. Make sure the new filing status accurately reflects your situation.
Continue through the rest of your return. The changes you made will now be incorporated into your tax calculations.
Scenario 2: You HAVE Already Filed Your Tax Return
This scenario requires filing an amended tax return using Form 1040-X. While a bit more involved, TurboTax makes the process relatively straightforward. It's crucial to wait until your original return has been processed and you've received your refund or paid your tax due before you amend.
Step 1: Prepare for Amendment Gather Necessary Documents
Before you start, make sure you have:
A copy of your original tax return that you filed. You'll need the figures from this return.
Any new or amended documents that support the change in your filing status or any other associated changes (e.g., if a new dependent changed your eligibility for Head of Household).
Step 2: Access the Amendment Feature in TurboTax
Log in to your TurboTax account you used to file the original return.
On the main screen or dashboard, look for a section like "Your tax returns & documents" and select the year you want to amend.
You should see an option to "Amend (change) return" or "Amend using TurboTax Online." Click on this option.
If you're using TurboTax Desktop, open the specific year's software and look for an option to "Amend a return after it was filed and accepted by the IRS."
Step 3: Initiate the Amendment Process and State Your Reason
TurboTax will guide you through the initial steps of the amendment.
You'll likely be asked to confirm that your original return was accepted by the IRS.
On a screen titled "OK, let's get a kickstart on your amended return" (or similar), select the reason(s) you're amending. This is where you'll indicate that you need to change your filing status.
Click "Continue."
Step 4: Make the Filing Status Change Within the Amended Return
Now for the core of the change:
TurboTax will present you with an interface designed for amendments. You'll typically see your original return's figures.
Look for a section related to "Personal Info" or "My Info" within the amendment flow.
Edit your personal information, just as you would if you hadn't filed yet. This is where you'll select the correct filing status.
TurboTax will then recalculate your tax liability based on the new filing status. Your refund calculator will likely reset to $0 and then show only the difference (increase or decrease) in your refund or tax due from the amendment.
Step 5: Review and Explain Your Amendment (Form 1040-X)
As you proceed, TurboTax will populate Form 1040-X, Amended U.S. Individual Income Tax Return. This form has three columns:
Column A: Shows the amounts from your original return.
Column B: Shows the changes you are making.
Column C: Shows the correct amounts after the changes.
You'll also be prompted to provide a clear explanation for why you're amending your return. For a filing status change, you might state something like, "Correcting original filing status from Single to Head of Household due to qualifying dependent." Be concise but accurate.
Step 6: Final Review and Filing Your Amended Return
Thoroughly review your amended return to ensure all changes are accurate and no new errors have been introduced.
Print and mail your amended return. As of now, the IRS generally allows e-filing of amended returns for the current and two prior tax years if the original return was also e-filed. However, some states may still require paper filing. TurboTax will typically advise you on the filing method. If mailing, remember to:
Sign and date Form 1040-X.
Attach any supporting documents if necessary (e.g., if you're claiming a new dependent).
Send it via certified mail for proof of mailing.
If you owe additional tax, include payment with your mailed return. If you're due a refund, it will be mailed to you after processing.
Key Considerations When Amending Your Return
Processing Time: Amended returns take significantly longer to process than original returns. The IRS advises allowing up to 16 weeks, though it can sometimes be quicker.
"Where's My Amended Return?" Tool: You can track the status of your amended return on the IRS website using their "Where's My Amended Return?" tool. You'll need your Social Security Number, date of birth, and ZIP code. Allow at least three weeks after mailing before checking.
State Taxes: If your federal filing status changes, it's highly likely your state filing status will also need to be amended. TurboTax can usually help with this, but be sure to follow your state's specific amended return instructions.
Statute of Limitations: Generally, you have three years from the date you filed your original return or two years from the date you paid the tax (whichever is later) to file an amended return to claim a refund.
Frequently Asked Questions (FAQs)
Here are 10 common "How to" questions related to changing your filing status on TurboTax:
How to know which filing status is correct for me?
TurboTax's interview questions guide you based on your marital status as of December 31st of the tax year, and whether you have dependents or pay more than half the cost of maintaining a home. The IRS defines five statuses: Single, Married Filing Jointly, Married Filing Separately, Head of Household, and Qualifying Widow(er). It's crucial to understand the criteria for each.
How to change filing status if I haven't submitted my TurboTax return yet?
Go to the "My Info" section within TurboTax, edit your personal information, and answer the questions about your marital status and household. TurboTax will then automatically apply the correct filing status based on your responses.
How to change filing status on TurboTax after I've already filed and it was accepted?
You'll need to file an amended tax return (Form 1040-X). Log in to your TurboTax account, select the tax year you wish to amend, and choose the "Amend (change) return" option. TurboTax will guide you through the process of correcting your filing status and generating Form 1040-X.
How to track the status of my amended return after changing my filing status?
You can track your amended return using the IRS's "Where's My Amended Return?" online tool or by calling 866-464-2050. It typically takes at least three weeks after mailing for your return to show up in the system and up to 16 weeks for processing.
How to ensure I've selected the most beneficial filing status?
TurboTax usually helps by presenting the optimal status based on your input. However, especially for married couples, comparing "Married Filing Jointly" versus "Married Filing Separately" can sometimes yield different results. Running both scenarios (if applicable) within TurboTax can help you determine the best option for your unique financial situation.
How to change my filing status if my marital status changed mid-year?
Your filing status is determined by your marital status on December 31st of the tax year. So, if you got married on December 30th, you are considered married for the entire year for tax purposes. If you divorced on December 30th, you are considered unmarried for the entire year.
How to avoid common errors when changing filing status?
Carefully read all the questions TurboTax asks about your personal and household situation. Double-check dates (especially marital status as of December 31st), and ensure all dependent information is accurate if you're claiming Head of Household. Review your final return thoroughly before submitting.
How to handle state tax returns after changing federal filing status?
If your federal filing status changes, your state filing status will likely need to change too. TurboTax will typically prompt you to amend your state return after you amend your federal one. Be sure to follow your state's specific instructions, as some states may require mailing a paper amendment.
How to know if a change in filing status will result in a refund or taxes owed?
When you amend your return in TurboTax, the software will recalculate your tax liability with the new filing status. The refund tracker will then display the difference – whether you are due an additional refund or owe more taxes.
How to get help if I'm stuck while changing my filing status in TurboTax?
TurboTax offers various support options, including their online community, support articles, and live tax experts (for an additional fee or if you have a Live product). You can also contact their customer support directly if you encounter technical issues.