If you’re supporting a family or maintaining a household, filing as Head of Household (HoH) could offer you some extra tax benefits. This status is ideal for individuals who are single, unmarried, or considered unmarried but provide a home for a qualifying person, such as a child or dependent.
What is the Head of Household standard deduction?
The standard deduction for Head of Household is $23,625.
What are the qualifications to file as Head of Household?
To qualify for the Head of Household filing status, you need to meet a few key criteria:
- You must have a qualifying child or dependent. A qualifying person could be your child, stepchild, foster child, or other eligible dependent. The qualifying person must have lived with you in the same home for more than half of the tax year, except for temporary absences, such as school or medical care.
- You must be unmarried or considered unmarried on the last day of the tax year. This means you’re not living with your spouse for the previous six months of the year, and you’re not filing a joint return with them.
- You must have paid more than half the cost of maintaining a home. These expenses typically include items such as like rent or mortgage payments, property taxes, utilities (including electricity, water, gas, etc.), home repairs and maintenance, and other essential living costs. Medical expenses, education expenses, and personal expenses, such as clothing or vacations, do not qualify as expenses for maintaining a home.
Why is Head of Household considered more beneficial than filing as Single?
When you file as Head of Household, you receive a much larger standard deduction than you would if you file Single. The tax brackets are also wider for the HoH filing status. With both a larger standard deduction and wider tax brackets, HoH filers will typically receive a larger refund than if they were to file as Single.