Head of household rules dictate that you can file as head of household even if you don’t claim your child as a dependent on your return. You have to qualify for head of household status. If the child didn’t live with his
father for more than half the year, the father wouldn’t be eligible to file as head of household. Only you would be able to use this status based upon this child. There is only one arrangement where more than one taxpayer can claim child-related benefits for the same child. Both of these must occur: If either parent is claiming a tax benefit, that parent must qualify for the benefit. Question If I lived apart from my spouse from July 10 to December 31 but wasn't legally separated from my spouse under a decree of divorce or separate maintenance at the end of the year, may I file as head of household? Will my filing status allow me to claim a credit for childcare expenses and the earned income tax credit if I have a qualifying child? Answer No, you may not file as head of household because you weren't legally separated from your spouse or considered unmarried at the end of the tax year. To be considered unmarried at the end of a tax year, your spouse may not be a member of your household during the last 6 months of the tax year and you must meet other requirements. Your filing status for the year will be either married filing separately or married filing jointly.
See What is My Filing Status? and Publication 501, Dependents, Standard Deduction and Filing Information for information about filing status. There is no tax
filing status that confuses taxpayers more than the one called "head of household." When you hear the term, what comes to mind? The breadwinner? The
main source of household income? To the Internal Revenue Service (IRS), it's not that simple. To qualify for head of household, you must pay for more than 50% of household expenses, be unmarried, and live with a dependent, whom you support for more than half the year. Key Takeaways
Filing Your Taxes As Head of HouseholdThe Guidelines for Filing as Head of HouseholdWhile this status can maximize your tax savings, you must ensure that you follow IRS guidelines fully in order to avoid a potential IRS inquiry or audit. For starters, you can't be married. Here is a look at what filing as head of household means for your taxes and who is eligible to file under this status. As mentioned, in order to file as head of household, you must meet several requirements:
If you do not meet all of these requirements, you are not eligible to claim the head-of-household filing status. Stipulations for Married TaxpayersMarried taxpayers are not eligible to claim the head-of-household status. You must be single or in some stage of separation. According to the IRS, you are considered unmarried if you are single, legally separated by divorce, or have lived apart from your spouse for six months or more in the calendar year. A Note on DependentsIn order to file as head of household, you must provide at least 50% of the care received by a dependent, such as a child, parent, brother, sister, step-parent, step-sibling, foster child, half-relative, or any other relative for which you can claim an exemption. It is wise to have supporting documentation to prove your claim, should the IRS inquire for further information. Significant Financial Benefits for Heads of HouseholdIf you qualify for head-of-household filing status, there are significant financial benefits in store for you. Not only will you receive a much more favorable tax rate than you would if you were to file as a single taxpayer, but taxpayers who file as head of household can claim a much higher standard deduction when filing their taxes. The standard deduction for married couples filing jointly for the tax year 2022 is $25,900 ($27,700 for 2023). For single taxpayers and married individuals filing separately, the standard deduction is $12,950 in 2022 ($13,850 for 2023). For heads of household, the standard deduction is $19,400 in 2022 ($20,800 for 2023). Should I Claim Single or Head of Household?If you are not married, you can choose single as your filing status. If you're single and supporting a dependent financially, then you can file as head of household. There are other requirements to be considered head of household, such as you paying for more than half the costs of the household for the year. How Much Do You Get for Filing as Head of Household?Those individuals that qualify to file for head of household can file $6,450 more in standard deductions than those filing single in 2022. In 2023, they can file $6,950 more in standard deductions. Heads of households also have wider tax brackets for lower income. Can 2 People Claim Head of Household?Yes, two people can claim head of household even if they live together if there are more than two households and each individual covered more than 50% of household expenses for the year in each separate household. The Bottom LinePrior to filing as head of household, be sure to review the IRS guidelines carefully to avoid an audit or hard inquiry in the future. While you may consider yourself the head of your household, your definition and the IRS's definition may vary significantly. Most questions regarding the head of household filing status can be found online at irs.gov, or you can call the Internal Revenue Service at 1-800-829-1040. |