Tax filing status determines how you will file your income tax return and affects your tax rates and eligibility for certain credits and deductions. 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 circumstances as of December 31 of the tax year. Choosing the correct filing status is important because it can significantly impact your tax liability. For example, Married Filing Jointly often provides more tax benefits than Married Filing Separately. Understanding your options helps ensure you pay the correct amount of taxes and maximize potential refunds.