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
- The head of household designation can help maximize tax savings with the Internal Revenue Service (IRS).
- There are key requirements for filing head of household—including being unmarried, paying more than half the costs of supporting the household, and living with a qualifying family member for who you pay more than half the support.
- Married taxpayers are not eligible to claim the head-of-household status—you must be single or in some stage of separation.
- For heads of household, the standard deduction is $19,400 for 2022 ($20,800 for 2023), versus $12,950 for 2022 ($13,850 for 2023) for those filing single.
Filing Your Taxes As Head of Household
The Guidelines for Filing as Head of Household
While 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:
- Be unmarried
- Pay more than half of the costs of supporting your household
- Live with other qualifying family members for whom you provide support for more than half of the year. Some examples of qualifying family members include a dependent child, grandchild, brother, sister, grandparent, or anyone else you can claim as an exemption.
If you do not meet all of these requirements, you are not eligible to claim the head-of-household filing status.
Stipulations for Married Taxpayers
Married 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 Dependents
In 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 Household
If 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 Line
Prior 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.