The head of household (HOH) filing status is designed to provide single or separated individuals with dependents a financial boost. To qualify as a head of household, taxpayers must meet several eligibility requirements. To start, the taxpayer must file a separate individual tax return and be considered unmarried. The unmarried status applies to taxpayers who are not legally married, are legally separated under a final divorce or separation agreement, have not lived with their spouse for the past six months, or are survived by a spouse.

In addition, the individual must have an eligible dependent, or qualifying person. This person can include a child who is related by blood to the taxpayer, a child who is born or adopted during the tax year, an elderly parent who is supported by the taxpayer, or certain other close relatives of the taxpayer. The dependent or qualifying person must live with the taxpayer for over half of the tax year, and the taxpayer must be financially responsible for over half of their support and housing costs.

The HOH filing status comes with a variety of benefits, including a higher standard deduction. For example, in 2020, the standard deduction for HOH filers is $19,400 versus $12,400 for other filers. HOH filers may also be able to claim an additional personal exemption, depending on the individual’s filing status. This extra exemption can amount to nearly a thousand extra dollars in tax deductions.

The head of household filing status can be incredibly beneficial for taxpayers with dependents. While the paperwork can be daunting, the additional tax deductions and financial benefits can be well worth it for those who qualify. For those who meet the criteria and wish to take advantage of the financial benefits, it is important to educate themselves on the rules and regulations involved with filing as head of household.