Do You Understand the Head Of Household Status?


         When it comes to choosing your filing status on a Tax Return, there are a few options, and most are easy to understand. “Single” does not need an explanation. “Married, filing jointly” applies if you were married as of December 31 of the tax year in question. “Married, filing separately” takes more work but can be done. “Qualifying Widow(er), with Dependent Child” will apply if the death has occurred within the past 2 years and the surviving spouse has not remarried. What makes the “Head of Household” designation different?

          Head of Household would apply to those who are not legally married or are legally separated/divorced according to state law. The Head of Household status has created some confusion because different standards need to be met to be able to qualify. This status is entitled to a larger standard deduction and lower tax rates. To be claimed, the spouses must have lived apart for at least 6 months during the tax year and the one claiming Head of Household is also claiming at least 1 dependent. They also need to pay for over half of the costs in the household. This is a tax filing status that requires a lot of documentation to support it. Check with you Qualified Tax Professional to make sure this is the right option for you.

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