Do you know what is a head of household filing status? It is an advantageous tax category for single or separated people who assist eligible dependents financially and housing-wise, and it is the Head of Household (HOH) filing status.
Compared to filing as a single person, HOH filing status has many benefits, including a bigger standard deduction and better tax rates. L&Y Tax Advisor further explains what is a head of household filing status. To be eligible, taxpayers must fulfill specific requirements.
What Qualifies You for Head of Household Filing Status?
To file as a head of household, you need to meet the following criteria:
Unmarried Status
You must be officially separated, divorced, or unmarried at the end of the tax year. If a married person lives apart from their spouse for the final six months of the year, they could be eligible.
Get detailed financial reporting and analysis.
Help a Qualifying Dependant
It would be best to have a qualifying dependant, such as a parent, child, or other family member. To comply with the IRS regulations, dependents must be:
- U.S. citizens
- Resident aliens
- Nationals
Pay Housing Costs
You are responsible for paying for over half of the costs associated with keeping the household up to date, such as:
- Utilities
- Taxes
- Insurance
- Rent or a mortgage
- Maintenance
The house may be the dependent’s domicile rather than yours if they are a parent.
Get your VAT tax number.
Benefits of Filing as Head of Household
For qualified taxpayers, the HOH filing status provides financial benefits that make it a desirable choice:
Higher Standard Deduction
In 2024, HOH filers will receive a standard deduction of $21,900, while single filers will receive $14,600. In 2025, this will rise to $22,500 for HOH filers.
Greater Tax Brackets
HOH filers benefit from reduced tax rates for a greater range of income levels. For example, in 2024, HOH filers’ incomes can reach $63,100 in the 12% tax rate, while single filers’ incomes can reach $47,150.
Get tax professionals near me.
What Qualifies Dependents?
Your dependent must fulfill IRS requirements to be eligible for the HOH designation. Dependents cannot include a spouse but may consist of eligible children or family members. Additionally, they cannot claim dependents or appear on multiple tax returns.
Should You File as Head of Household?
Filing as Head of Household benefits most qualified taxpayers due to the larger deductions and lower tax rates. It offers financial assistance according to their situation. This status is especially advantageous for single parents or those providing for dependents.
The Bottom Line
Now you know what is a head of household filing status!
For eligible individuals, the HOH filing position provides significant tax advantages. Eligible taxpayers may benefit from their status for a more advantageous tax result if they satisfy the requirements of being unmarried, providing for a dependent, and covering household expenditures. Filing as HOH may reduce your tax burden if you fulfill the requirements.
Also read: How old do you have to be to be a stripper?
