Your tax filing status depends on your life circumstances, the most important being whether you're married. Other factors include whether you have dependents, and if you used to be married but your spouse is now deceased.
The Internal Revenue Code offers five different filing status options, and you must choose one of them when you complete your tax return. The head-of-household status is considered to be the most advantageous because taxpayers who qualify get a higher standard deduction and wider tax brackets compared to the single filing status. Numerous rules apply to qualifying, however.
How Do You Claim Head-of-Household Filing Status?
Qualifying for head-of-household status means meeting a series of interlocking rules involving your marital status, paying for more than half your household’s expenses, and having a dependent.
The Unmarried Test
Normally, a taxpayer must be unmarried on the last day of the tax year to file as head of household. This means you're single, divorced, or legally separated under a separate maintenance decree issued by a state court. But you can be "considered” unmarried if you're still legally married but you lived in a separate residence from your spouse for at least the last six months of the year—literally from no later than July 1 through the end of December.
You must file a separate tax return from your spouse, and you must still meet the other two criteria for head-of-household status if you qualify under the “considered” unmarried rule: the support test and the qualifying dependent test.
The Support Test
The support test requires that you provide more than half the cost of keeping up your home for the entire year. Qualifying costs include expenses like rent or mortgage interest payments—although not the principal portion of your mortgage payments because that’s paying back your loan. They include property taxes, property insurance, repairs, utilities, and groceries.
Unfortunately, costs associated with clothing, education, medical care, vacations, life insurance, and transportation don't count toward this test.
This doesn’t necessarily mean that you have to be the only adult living in your household. You can still have a roommate to help defray costs, but you must personally pay at least 51% of the household expenses. You won’t qualify as head of household if you scissor expenses exactly down the middle.
Income received from public assistance programs such as Temporary Assistance for Needy Families doesn't count toward financial support provided by a taxpayer for purposes of qualifying for head of household filing status. If you used funds from any of these sources, you can't include it as money you personally paid toward supporting your household.
The Qualifying Dependent Test
A qualifying dependent must live in your home for more than half the year, and this is the most complicated rule of all. Only certain close relatives can be qualifying persons for purposes of meeting the head-of-household filing status rules. They include:
- Your child, stepchild, adopted child, foster child, brother, sister, or a descendant of one of these individuals whom you claim as a dependent under the qualifying children rules
- Your child, stepchild, adopted child, foster child, brother, sister, or a descendant of one of these individuals whom you could claim as a dependent under the qualifying children rules, but you've elected not to claim them as a dependent because you released the right to claim the child as a dependent to the noncustodial parent
- Your mother or father who can be claimed as your dependent under the qualifying relative rules
- Your brother, sister, grandparent, niece, or nephew whom you can claim as a dependent under the qualifying relative rules
Tools for Determining Filing Status
The IRS has an interactive filing status tool on its website. It takes about five minutes to complete and it can help you determine if you qualify for head of household status. Most tax preparation software will ask you a series of questions to help you determine your filing status for you as well.
Standard Deduction for Heads of Household
Your filing status determines the amount of your standard deduction, as well as the tax rates you'll pay on your income. The head of household standard deduction for 2021 is $18,800, up from $18,650 in 2020.
Contrast this with single filers and married individuals who file separate returns—they can claim only a $12,550 standard deduction in 2021. Married taxpayers who file joint returns get a $25,100 deduction, but this works out to one $12,550 deduction for each of them, just as though they were single.
Head of Household Tax Rates
This table shows the tax rates that apply to head-of-household filers for tax year 2021, the tax return you'll file in 2022. Each segment of your income is taxed at the applicable bracket or percentage rate.
|Head of Household Tax Brackets for 2021|
|37%||$523,601 or more|
Head-of-household filers also get a break on the long-term capital gains tax rate. They don't jump to the 15% rate in the 2021 tax year until their taxable incomes exceed $54,100. It's just $40,400 for other unmarried taxpayers, and $80,800—again, double the amount for other single filers—for married taxpayers filing jointly.
Exceptions to the Rules
A taxpayer and their qualifying dependents are considered to reside in the same household during periods of temporary absences if the absence is due to "illness, education, business, vacation, or military service," according to the IRS. In other words, if your child lives away at school for a portion of the year, they’ll still qualify you.
There's also a special exception for people who support their dependent parents. A parent can be a qualifying person for purposes of meeting the residency test even if they don’t reside in your home, as long as you can claim them as your dependent and you meet the support test. You must pay more than half the cost of maintaining their home for the year.
You'd also meet the qualifying dependent test if you paid more than half the cost of keeping your parent in a home for the elderly or a rest home.
Can Two Spouses Both Qualify? An Example
It's possible that two taxpayers who used to be married to each other could each qualify as head of household due to the complexity of these rules—assuming they're divorced as of December 31 of the tax year, or they haven't lived together from July 1 onward.
For example, Mary might maintain her own residence, and the child she and John share lives with her throughout most of the year. She claims the child as her dependent. She has a roommate to help her make ends meet, but the roommate only contributes about a quarter of the household's annual expenses. Mary pays the other 75%.
Mary qualifies as head of household. She meets both the qualifying dependent test and the support test. She and John are "considered unmarried" under IRS rules because she and John broke up and moved into separate residences on June 1, and they never lived together after that point.
As for John, he lives alone. He pays 100% of his household expenses, and he also paid half the annual cost for his mother to live in a nursing home. John also qualifies as head of household. He's considered unmarried and he meets both the support test and the qualifying dependent test because he provides for his mother.
Frequently Asked Questions (FAQs)
What is the difference between single and head of household?
Although heads of household and single filers are both unmarried taxpayers, there are significant differences. Single filers do not need to prove they are supporting qualifying dependents and they receive fewer tax benefits than those who file as head of household.
What happens if two people claim head of household?
Two unmarried parents cannot file as head of household for the same dependents. If both seek to claim this status for supporting the same qualifying dependents, the IRS will not accept both returns, and both taxpayers may have to pay a penalty.
How do you prove head-of-household status to the IRS?
The IRS accepts a variety of documents to prove that you meet each of the three requirements to pass as a head of household. These are listed on Form 886-H-HOH.