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Tax Tip: Know Your Filing Status

Creatas/Thinkstock(NEW YORK) -- When you fill out your 1040 form this tax season, you will need to choose your filing status. Depending on which box you check, the choice could wind up costing you a lot of money.

H&R Block's Kathy Pickering gave one woman's story: "She was a single woman who was caring for a number of kids, some nieces and nephews full time, and she had filed as a single filing status whereas had she filed head of household, she would have had a more favorbale status."

Accountants say it's a good idea to run the numbers if you fall under more than one filing status. For instance, many married couples wonder whether it makes more sense to file separate returns than filing a joint 1040.

As Eric Smith with the IRS explains, only about 1 or 2 percent of married couples find filing separately works better for them.

"There are some deductions and credits that are not available if you file separately, but only are available if you file jointly, so that's another consideration," he says.

Copyright 2012 ABC News Radio

ABC News Radio