If a taxpayer lives apart from their spouse but is not legally separated by the end of the year, which tax status can they choose?

When a taxpayer lives apart from their spouse but is not legally separated by the end of the year, they are considered to be in a marital relationship for tax purposes. This means they have the option to choose either "Married Filing Separately" or "Married Filing Jointly" as their tax status.

Choosing "Married Filing Separately" allows the taxpayer to report their income, exemptions, and deductions separately from their spouse, which may be advantageous depending on their individual financial situation. On the other hand, "Married Filing Jointly" can often provide more tax benefits, such as higher income thresholds for tax brackets and eligibility for certain credits and deductions.

The requirement of being legally separated is crucial because, without that legal status, the taxpayer still maintains their married status, which is reflected in their eligibility for the tax statuses mentioned. Consequently, the correct choice in this scenario encompasses both "Married Filing Separately" and "Married Filing Jointly" as applicable options for the taxpayer.