Tax filing status determines how you will file your taxes and affects your tax rates and eligibility for certain credits. The five main categories are Single, Married Filing Jointly, Married Filing Separately, Head of Household, and Qualifying Widow(er). Your status is based on your marital situation and family structure as of December 31 of the tax year. Choosing the correct filing status is important because it influences your tax liability. For example, Married Filing Jointly often provides more tax benefits than Married Filing Separately. Understanding your options can help you maximize deductions and minimize taxes owed.