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Head Of Household Filing

Do you know if you should be filing as head of household? What are the benefits? What are the requirements? In this post, we will answer all of your questions about filing head of household. We will discuss who can file as head of household, what the requirements are, and the benefits of doing so. So whether you are just starting to think about taxes or you have already started to prepare your return, this post is for you!

Who Can File As Head of Household?

To qualify to file as head of household, you must meet all three of the following criteria:

  • You are unmarried or considered unmarried on the last day of the year. This means that you are either single, divorced, or widowed. It also means that you cannot be married and file separately from your spouse.
  • You have a qualifying child or dependent. A qualifying child must be related to you by blood, adoption, or marriage. They must also live with you for more than half the year and be younger than 18 (or 24 if they are a full-time student). A qualifying dependent can be any person who meets the IRS definition of a dependent. This includes people who are not related to you, such as an elderly parent.
  • You paid more than half the cost of maintaining a home for the year. This includes rent or mortgage payments, property taxes, insurance, utilities, food, and other necessary expenses. If you are sharing these costs with roommates or family members, you can still qualify if you paid more than half.

What Are the Requirements For Filing As Head of Household?

There are two main requirements for filing as head of household. Let’s take a closer look at each of these requirements.

  • To be considered unmarried on the last day of the year, you must either be single, divorced, or widowed. You cannot be married and file separately from your spouse. This requirement is in place to make sure that unmarried people are the ones taking advantage of the head of household tax benefits.
  • The second requirement is that you have a qualifying child or dependent. A qualifying child must be related to you by blood, adoption, or marriage. They must also live with you for more than half the year and be younger than 18 (or 24 if they are a full-time student). A qualifying dependent can be any person who meets the IRS definition of a dependent. This includes people who are not related to you, such as an elderly parent.

What Are the Benefits Of Filing As Head Of Households?

There are three main benefits of filing as head of household. Let’s take a closer look at each of these benefits.

  • The first benefit is that you will be taxed at a lower rate. The tax rates for the head of the household are lower than the tax rates for single filers. This means that you will owe less in taxes overall if you file as head of household.
  • The second benefit is that you will get a higher standard deduction. The standard deduction for head of household is $18,350 in 2019, compared to $12,200 for single filers. This means that you can deduct more of your income from taxes if you file as head of household.
  • The third benefit is that you may be eligible for certain tax credits. This means that you can get a refund for some of the taxes that you paid during the year. The most common tax credit for the head of household filers is the earned income tax credit.

What Are The Drawbacks Of Filing As Head Of Households?

There are two main drawbacks of filing head of household.

  • The first drawback is that it can be difficult to prove that you meet the requirements. This is because you will need to provide documentation to show that you are unmarried and have a qualifying child or dependent.
  • The second drawback is that it may not be worth it to file as head of household if your tax liability is low. This is because the benefits of filing as head of household are only available to those who owe more in taxes.

Conclusion

If you are supporting one or more people other than yourself, filing as head of household can save you a significant amount of money on your tax bill. This is especially true if you have a higher standard deduction available to you. Make sure to consult with a tax professional to see if the head of household is the best option for you. Thanks for reading!

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