Head of Household (HOH)

Head of Household is a U.S. federal tax filing status for unmarried taxpayers who support a qualifying dependent and maintain a home for that person. It generally offers a larger standard deduction and more favorable tax brackets than the Single filing status.

Key points

• Available to unmarried or considered-unmarried taxpayers who maintain a home for a qualifying person.
• Requires paying more than half the cost of supporting the qualifying person and the household.
• Typically results in a lower tax liability than filing as Single.

Who qualifies

To use the Head of Household filing status, you must meet all of the following:
* Be unmarried or “considered unmarried” on the last day of the tax year (for example, you did not live with your spouse during the last six months of the year).
* File an individual tax return.
* Have a qualifying person who lived with you for more than half the year (special rule applies for parents).
* Pay more than 50% of the cost of keeping up the household where the qualifying person lives.

Qualifying persons commonly include:
* A qualifying child (dependent child who meets relationship, age, residency, and support tests).
* A qualifying relative, such as a dependent parent (a parent need not live with you if you pay more than half the cost of keeping up the parent’s main home).

Dependents must meet IRS rules on citizenship/residency (U.S. citizens, U.S. nationals, U.S. resident aliens, or residents of Canada or Mexico), and they cannot be claimed as a dependent on another taxpayer’s return.

What counts as household and support costs

Household costs that factor into the “more than half” test include:
* Rent or mortgage
* Utilities
* Property taxes and insurance
* Repairs and maintenance
* Food and other household expenses

You must demonstrate that you paid more than half of these combined costs for the qualifying person’s main home.

Head of Household vs. Single

• Standard deduction: HOH filers receive a larger standard deduction than Single filers.
• Tax brackets: HOH brackets are wider and generally result in lower tax rates at given income levels compared with Single.
  If you qualify for HOH, it is usually more advantageous than filing as Single.

Standard deduction — brief explanation

The standard deduction reduces your taxable income by a fixed amount before tax is calculated. HOH filers receive a higher standard deduction than Single filers; amounts are adjusted annually for inflation.

Common scenarios and tips

• Married but separated: You may be considered unmarried for HOH if you didn’t live with your spouse during the last six months of the tax year.
• Parent living elsewhere: You can claim HOH for a parent who lives elsewhere if you provide more than half the cost of keeping up the parent’s main home.
• Check the IRS guidance: The IRS provides detailed tests for “qualifying child” and “qualifying relative” and examples to help determine eligibility.

Bottom line

Head of Household is a beneficial filing status for unmarried taxpayers who maintain a home and provide over half the support for a qualifying person. If you meet the IRS tests for a qualifying person and household support, filing as Head of Household typically lowers your tax burden compared with filing as Single.