Understanding Head of Household Eligibility Requirements
As a taxpayer, you can file under different tax filing statuses. One such status is head of household. It provides significant tax benefits but can be confusing to understand. In this article, we’ll explain the head of household status and its eligibility requirements.
What is Head of Household?
Head of household is a tax filing status that single parents and unmarried individuals may qualify for. This status allows you to take a higher standard deduction and lower tax rates, resulting in a lower tax bill.
Who is Eligible for Head of Household?
To qualify for head of household status, you must meet the following eligibility requirements:
1. Relationship Status: You must be unmarried or considered unmarried on the last day of the tax year. If you are married, you can file separately and still qualify for head of household if you meet specific criteria.
2. Dependents: You must have at least one dependent who lived with you for more than half the year. Dependents can include your child, stepchild, foster child, or a relative you care for.
3. Financially Responsible: You must have paid for more than half of the household expenses during the tax year. Household expenses include rent or mortgage payments, utility bills, groceries, and other household-related costs.
Qualifying Widow(er) with a Dependent Child
Another way to qualify for head of household status is if you are a qualifying widow or widower with a dependent child. You must meet the following criteria:
1. Your spouse passed away within the last two years.
2. You have a dependent child who lived with you for more than half the year.
3. You paid for more than half of the household expenses during the tax year.
Conclusion
Understanding the head of household status and its eligibility requirements is essential to maximize tax savings. Make sure you meet the criteria before filing under this status. Always consult a tax professional for guidance specific to your situation. Keep in mind that the IRS can audit tax returns up to three years after they have been filed.
