Head of Household Tax Filing: A Complete Guide

Head of Household is a tax filing status in the US for unmarried or single people who maintain a home for qualifying individuals. Filing taxes as a Head of Household offers several benefits. It includes a larger standard tax deduction and generous tax brackets.

Furthermore, even if you are married at the end of the year, you can still qualify to file taxes as Head of Household. Want to know more about this filing status, its benefits, and who can file it in detail? Well, then you are on the correct page. This blog contains all the information you are looking for. Read on to gather all the details. 

What is Head of Household (HOH)?

As mentioned above, the Head of Household is a tax status for single or unmarried individuals living in the US. However, to qualify for this filing status, they have dependents. Additionally, they have maintained a proper home for that dependent person, such as a parent, child, or relatives. 

For this reason, this tax filing status is generally compared to the single tax filing status. However, when comparing, there is a big difference between them. For instance, filing taxes as Head of Household provides you with a higher tax deduction in comparison to a single tax return.

We will discuss this later on. Moving ahead, let's first understand the requirements for filing taxes as a Head of Household. 

Requirements to File Taxes as Head of Household

Every year, the U.S. Internal Revenue Service issues guidelines on head-of-household status. In this, it is clearly stated who qualifies for this status and who does not. To give you an idea, here are some requirements that qualify a person for HOH status. 

Maintaining a Household

To qualify for HOH status, the IRS requires that an individual have paid more than half of the household expenses. The prices within the financial year used to make this calculation include:

• Mortgage interest
• Property taxes
• Rent
• Real estate taxes
• Grocery expenses
• Insurance on the home
• Utilities 
• Repairs

However, the following expenses are not counted to qualify for this tax filing status:

• Education
• Vacations
• Clothing
• Restaurant expenses
• Medical treatments or medical insurance premiums
• Mortgage principal
• Life insurance
• Transportation
• Rental value of a home
• Services provided by you or other household members

Furthermore, if the taxpayer receives assistance with household expenses from a relative, a friend, or a government program, they still qualify for the HOH status if they have paid at least half of the bills using their earnings or savings. Moreover, it should not include the funds from any of these sources when maintaining a household. 

Considered Unmarried

An individual will qualify for the head of household if he/she were unmarried at the end of the year. As stated above, the HOH tax filing status applies to unmarried people and to those who are legally divorced or separated. Additionally, a married couple that lives separately from July 1 to December 31 is also considered unmarried.

Furthermore, to file taxes as HOH, the spouses should also meet the other two stated requirements. However, if they are living separately for a temporary reason, then they do not qualify for HOH status. It includes military services, medical treatments, or college attendance. 

Have a Qualifying Child or Relative

A qualifying child or relative should have lived with the taxpayer for more than half of the year. Additionally, the taxpayer should pay at least 50% of the maintenance costs. People who qualify for this include a child, foster child, stepchild, or adopted child. Also, it involves descendants of any of those who, under the qualifying children rules, are dependents. 

Furthermore, you can also file taxes as HOH under the qualifying relative rule. It includes your father, mother, grandparents, brother, sister, nephew, or niece.

Also, if the qualifying relative is a parent, the IRS has a special rule. If the parent is not living with the taxpayer, they can still file taxes under the HOH status. However, to do this, they need to pay more than half of their parents' expenses for the whole year. Additionally, if they are living in a rest home, the taxpayer should pay more than half of the prices for keeping their parents there.

These are the eligibility criteria that you need to follow for filing taxes as Head of Household. Moving on, let's look at the benefits of filing taxes under this status. 

Benefits of Filing Taxes as Head of Household

Compared with filing as a single or married person, filing as a Head of Household offers several benefits. Want to know what they are? Read on and get your answers.

Lower Tax Rates

The Head of Household falls under the lower tax bracket. When you file taxes under this status, it reduces your overall tax liability. Additionally, sometimes even the taxes you owe.

For instance, a taxpayer whose annual income is between $ 9,326 and $ 37,950 has a 15% tax rate applied. However, if the taxpayer pays taxes under the HOH status, the same rate applies on income up to $50,800. 

Higher Standard Deduction

A standard deduction is a fixed amount that is deducted from your taxable income. It is provided to you as per your filing status. Considering this, if you file taxes as HOH, you receive a higher standard deduction. It reduces your taxable income and lowers the tax due amount. 

For instance, if you file taxes as a married couple, you get the standard deduction of up to $6350. However, if you file taxes as Head of Household, you can claim up to $9350 tax deduction. In your favor as HOH, it brings a difference of $3000. Here, the tax rate was according to 2017. 

Still confused? Look at the table below to understand the difference in filing taxes as HOH or in another tax status.

These are some of the benefits taxpayers receive when filing as Head of Household. Moving ahead, let's compare it with other filing statuses and know why it is a better tax filing option.

Comparison of the Head of Household Status with Other Filing Statuses

Let's compare Head of Household status with other filing statuses and determine which is better.

Head of Household vs Single

Compared with single tax filers, the Head of Household has a lower taxable income. Additionally, this filing status has more potential for refunds. Also, under this filing status, you can get a higher Standard Deduction. Apart from this, those filing taxes as HOH can also use wider tax brackets. It also helps them lower their taxable income. 

Head of Household vs Married Filing Jointly

When comparing the Head of Household filing status to married filing jointly, the married one has more benefits. It provides the taxpayers with wider tax brackets. Also, married tax filing offers a better Standard Deduction than HOH. Joint tax filers have twice the tax deduction as single filers. Furthermore, the Standard Deduction for married filing is 33% more than the HOH ($29,200 vs $21,900 for 2024).

This was all about comparing the HOH, single, and married tax filing statuses. Now, let's know the tax brackets for this filing status. 

What Are the Tax Brackets for the Head of Household Filing Status?

The tax brackets for the Head of Household filing status are as follows:

These are the tax brackets for taxpayers filing taxes as Head of Household. Moving further, let's know if two people can file HOH on their tax return. 

Can Two People File Head of Household on their Income Tax Return?

No, two people cannot file a tax return as the Head of Household on the same return. If they are married, then they generally need to file taxes jointly on the same return. Additionally, if filing separately, then on separate returns. 

However, two people can claim the HOH status while living in the same house. For this, they need to fulfill the following criteria:

• Both are unmarried.
• Both are eligible to claim on their own qualifying dependent.
• The dependent should live in the same house for more than half a year. However, if they are parents, then they can live separately. In this scenario, you need to pay more than half of their expenses.
• Both have to pay more than half of the expenses to keep up the part of the home for their dependents and themselves. 

Based on the above information, two people cannot file as HOH on the same return. However, they can qualify for this status if they meet the eligibility criteria. Now, moving ahead, let's know if you can claim HOH without a dependent. 

Can You Claim Head of Household Without a Dependent?

For filing taxes as Head of Household, you generally need a qualifying dependent or child. However, if you are a custodial parent, you are also eligible for this tax filing status. This can happen when you cannot claim the child as a dependent. This is because, when meeting the rules, the non-custodial parent can claim it. These are as follows:

• You are unmarried or, at the end of the year, considered unmarried.
• More than half of a child's support comes from their parents.
• The child's custody for more than half of the year was with one or both parents.
• You sign a declaration form stating that for a year, you will not claim the child as a dependent. Additionally, the child's expenses are included with the non-custodial parent's tax return.

This is the scenario when you can file taxes as Head of Household without a dependent. 

Final Thoughts

Lastly, filing taxes as Head of Household offers you a lower tax bracket. Additionally, provides you with a higher Standard Deduction. However, to qualify for this tax status, you need to fulfill the eligibility criteria. It includes maintaining a household, being considered unmarried, and having a dependent child or relative. It also helps you keep more of your money. 

Furthermore, are you also confused about your tax filing status or facing issues with fulfilling the tax requirements? Then connect with Savetaxs and let our experts help you with this. We can assist you in knowing your tax filing status in the US. Additionally, guide you in filing your taxes without any errors. Contact us now and let's start your IRS tax return together.