The tax filing process can sometimes feel like navigating a maze, filled with twists and turns that leave you with more questions than answers. One of the most commonly misunderstood designations is the "head of household" filing status. Yet, this specific status can provide significant tax benefits for those who qualify—such as larger standard deductions and lower tax rates.
Want to know if you’re eligible? In this post, we’ll break down the qualifications for head of household status, explain its advantages, and share tips for identifying whether it’s the right fit for your unique situation. By the end of this guide, you’ll be better equipped to take full advantage of the tax code and avoid leaving money on the table.
Before we get into how to qualify, let's define what it means to file as head of household. This filing status is available for unmarried taxpayers (or those considered unmarried under IRS guidelines) who provide substantial financial support for their household. It’s considered one of the more favorable filing statuses because it often reduces your tax liability.
If you're approved to file as head of household, you:
But qualifying isn’t as simple as claiming it. There are specific criteria you’ll need to meet.
To file as head of household, you typically must be unmarried on the last day of the tax year. However, there’s a special provision for those who are technically married but meet the IRS’s definition of "considered unmarried," such as individuals who:
If you've recently divorced or separated, this rule might apply to you, so double-check your eligibility.
Being the financial backbone of your household is key to qualifying. You need to show that you paid more than 50% of the total costs to keep up your home, which includes:
If you’re cohabiting with someone who shares these costs equally, you likely won’t qualify as head of household.
Another key requirement is having at least one qualifying dependent who lived with you for more than half the year. Common examples include:
The dependent must meet IRS guidelines, including earning less than $4,700 in taxable income (for 2023) if they are not your biological child.
If you’re supporting an elderly parent, they don’t need to live with you for you to qualify for head of household. For example, if you pay more than half of their nursing home fees or other living expenses, you may still be eligible.
If you meet the above requirements, congratulations—you could see tangible financial benefits come tax season! Here’s what this filing status unlocks for you:
With an enhanced standard deduction of $20,800 for 2023, head of household filers can significantly reduce their taxable income compared to single filers ($13,850) or those married filing separately ($13,850).
Filing as head of household allows you to access lower tax brackets for a greater portion of your income. For example:
Those who file as head of household may qualify for additional tax credits, such as the Child Tax Credit and Dependent Care Credit, both of which can reduce your overall tax liability.
Despite its benefits, many taxpayers make mistakes when attempting to file as head of household. Here are a few pitfalls to steer clear of:
If you’re unsure about your eligibility, working with a tax professional is a great way to avoid errors and ensure compliance.
Filing as head of household on your tax return is straightforward if you have the proper documentation. When filing:
Not sure your documentation is comprehensive? A qualified CPA can help organize your records with ease.
Qualifying for head of household status can save you thousands of dollars in taxes—but it’s crucial to ensure you meet all eligibility rules before claiming it. If you’re still uncertain about your status, SD Mayer & Associates can help.
At SD Mayer, we take a client-first approach to tax preparation and financial planning. Our team is here to simplify tax rules, maximize deductions, and save you money. Contact us today to book a consultation and determine the best filing status for your situation.