The IRS also considers you unmarried for tax purposes if your home state has declared you legally separated from your spouse. Simply moving out of your shared home isn’t enough; you need to get in front of a judge to be granted a legal separation.
While both single and head of household refers to unmarried individuals, the head of household must pay for more than half of the household’s expenses and support qualifying dependents. The benefit of filing head of household is a larger standard deduction, lower tax rate, and higher income limits for stimulus checks. For 2022, the standard deduction for single filers is ,950, while the standard deduction for head of household is ,400.
Don’t get any ideas about divorcing your spouse for a few days around the end of December just to file as head of household. If you turn around and get remarried any time during the following year, you’ll face tax consequences from the IRS.
Definition of Head of Household
Can I File as Head of Household if I’m Married?
Most tax professionals advise taxpayers to file your tax return as head of household whenever possible to take advantage of available tax breaks that include:
1. You’re Not Married on the Last Day of the Year
What is the Difference Between Single and Head of Household?
Filing your taxes as head of household can seem vaguely intimidating, but it’s really nothing more than a designation by the IRS that may lower your tax bill and put more money in your pocket.
If you still have some questions about qualifying for head of household status, check our answers below to the most common questions.
This tax status allows you a larger standard deduction, lower tax rate, and higher income limits for stimulus checks.
2. You Paid More Than Half the Expenses for Keeping Up the Home During the Year
To qualify as head of household, you’ll need to meet certain criteria.
Does Receiving Child Support Disqualify me from Claiming Head of Household?
3. You Must Have a Dependent Living in the Home With You for at Least Half the Year
Source: thepennyhoarder.com
Who Qualifies for Head of Household?
Can you Claim Head of Household Without a Dependent?
Filing Taxes as Head of Household
Check the IRS website for a full list of qualifying dependents.
- Larger standard deductions. People filing under a single or married filing separately status are entitled to a $12,550 deduction for the 2021 tax year. That figure jumps to $18,800 in 2021 if you file as head of household.
- Lower tax rate. Filing as head of household puts you in a different tax bracket than other filing statuses. That could mean you have less taxable income and lead to a lower tax bill or a larger tax refund.
- Higher income limits for stimulus checks: Like the other stimulus checks, reduced payment began for the third stimulus check at $75,000 for single users. However, if you’re the head of household, this phaseout doesn’t apply until your income is $112,500.
That means you must have paid more than half of all household bills, including rent or mortgage, groceries, utilities and insurance.
Frequently Asked Questions (FAQs) About Head of Household
It’s all fun and games until tax time rolls around, and then “head of the household” takes on an entirely different meaning.
You can also claim parents, stepparents, grandparents and certain individuals who are related to you by marriage as dependents. The key is they must have lived with you for at least half the year, and you must have paid more than half of their financial support. You can still claim your parents if they don’t live with you as long as you pay for more than half of their living expenses.
No, a head of household status requires a qualifying dependent. You can, however, claim head of household without having a child. Other qualifying dependents include your mother or father, a relative who is permanently disabled, or other relatives that live with you and make less than ,500 a year. Basically, if you financially support them and they live with you, they likely qualify as a dependent for head of household status. <!–
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