old gives taxpayers at all types of income levels a lower tax rate. This can lead to some nice savings, especially if you’re on the higher end of the income scale. Whether you’re a single parent or someone supporting other dependents, it’s a key distinction to file as head of household. But not everyone qualifies for the benefits.
The 3 Qualifications for Head of Household
The IRS has three specific rules to determine whether you’re eligible for this filing status, and in order to claim head of household, you must meet a specific set of criteria. There are three key items, and each one needs to apply to your situation.
1. You’re not married.
The first requirement is that you must be unmarried as of the last day of the tax year. This includes being single, divorced, or legally separated through a court order.
However, if you’re married but have lived apart from your spouse for the last six months of the year, you can still qualify as head of household. In this case, the IRS considers you “unmarried” for tax purposes, even if your marriage is still legally intact. It pays to know the difference!
2. You support yourself and pay at least half the cost of keeping up your home.
The next rule is about supporting yourself and being responsible for where you live. To qualify as head of household, you must be responsible for more than 50% of the costs to maintain your home throughout the year. This includes common expenses like rent or mortgage payments, property taxes, homeowners insurance, utilities, and whatever groceries the people in your home need.
This criterion does not, however, include expenses like medical bills, transportation, or clothing. The IRS provides worksheets to help calculate whether you meet this requirement, but the basic idea is that you need to be the primary financial contributor to your household. If you’re looking at anything less than 50%, or even a clear 50/50 split, you won’t be eligible.
3. For at least half of the year, there is a qualifying person living with you.
This last item to qualify can be a little tricky. To claim head of household, you must have a dependent who lives with you for at least six months out of the year. You won’t qualify as head of household just for being single and living alone. You must also have a qualifying dependent.
The most common qualifying dependents are children, but the IRS also allows for other family members, including siblings, grandchildren, and even grandparents. Additionally, there’s a special rule for supporting a parent. If you provide more than half the cost of maintaining your parent’s separate home—such as paying for their rent or assisted living facility—you can still qualify as head of household, even if your parent doesn’t live with you.
Confused About Tax Code Terminology? We Can Help!
Navigating tax terms like “Head of Household” isn’t always straightforward, but you don’t have to do it alone. Our team at NSO & Company is available to help you with all of your tax questions year-round. Tax planning isn’t just for April. So whether you’re looking to figure out your filing status because of a life change or you’re just ready for a quick check-in, please don’t hesitate to reach out. Send us a message today, and we’ll schedule a time to answer your questions and make sure you’re on the right track.