Many taxpayers don’t realize that filing as Head of Household can lead to significant tax savings, including a higher standard deduction and lower tax brackets. According to Investopedia, for the 2024 tax year, Head of Household filers get a $21,900 standard deduction, compared to $14,600 for single filers—a difference that could lower your taxable income and reduce your tax bill. But not everyone qualifies for this status. In this article, explore who qualifies, the benefits, and how to claim it properly to maximize your savings in 2025.

What Is the Head of Household Filing Status?

The Head of Household (HOH) filing status is one of the most favorable tax filing statuses available. It provides lower tax rates and a larger standard deduction than the Single or Married Filing Separately statuses. If you qualify, this status can significantly reduce your federal income tax liability and maximize your tax benefits.

Many taxpayers mistakenly assume that living alone or being the primary income earner qualifies them for HOH filing—but the IRS has strict rules. You must be unmarried (or considered unmarried) and pay more than half the cost of maintaining a home for a qualifying child or dependent.

How Does the IRS Define Head of Household?

To qualify for Head of Household, you must meet three main criteria:

1. You Must Be Unmarried or Considered Unmarried

The Internal Revenue Service (IRS) requires you to be legally single or considered unmarried by the last day of the tax year.

• If you are divorced or legally separated, you can file as HOH if you meet the other qualifications.
• If you are married but living apart, you may still claim Head of Household filing status if you meet the "considered unmarried" rules.

2. You Must Pay More Than Half the Cost of Maintaining a Home

To be eligible to file as Head of Household, you must pay more than half of the total household expenses for the year. This includes:

• Rent or mortgage payments
• Property taxes
• Home insurance
• Utility bills (electricity, water, gas, internet)
• Groceries (but not dining out)
• Repairs and maintenance
• Necessary household expenses

If someone else—such as a roommate, relative, or government assistance program—covers a significant portion of the expenses, you may not qualify for HOH status.

3. You Must Have a Qualifying Child or Qualifying Relative

To use the HOH filing status, you must have a qualifying dependent who lived with you for more than half the year.

Your qualifying child or qualifying relative must meet IRS guidelines, which include:

• Qualifying child: Your biological child, stepchild, foster child, sibling, or grandchild under 19 years old (or under 24 if a full-time student).
• Qualifying relative: A parent, sibling, grandparent, niece, or nephew who earns less than $4,700 in tax year 2024 and whom you financially support.

Further Reading: Learn how to qualify for head of household filing status

Who Is Considered “Unmarried” for Tax Purposes?

The IRS has specific rules for determining if you are "considered unmarried" for Head of Household status.

• You may qualify as unmarried for tax purposes if:
• You file separately from your spouse (Married Filing Separately filing status).
• Your spouse did not live in your home for the last six months of the tax year.
• Your home was the main home for a qualifying child for at least half the year.
• You paid more than half the cost of maintaining the household.

If you meet these conditions, you may be able to claim Head of Household filing instead of Married Filing Separately, which usually results in lower tax rates and higher tax deductions.

What Are the Tax Benefits of Filing as Head of Household?

If you qualify as Head of Household, you receive key tax advantages:

1. Larger Standard Deduction

Using the Head of Household tax filing status, you get a bigger standard deduction than Single filers:

• $21,900 for HOH filers
• $14,600 for Single filers or those filing separately

This reduces your taxable income, potentially lowering your tax liability and increasing your refund.

2. Lower Tax Rates

The HOH status allows more of your income to be taxed at lower rates, saving you money.

Example: If your taxable income is $50,000, filing as Head of Household instead of Single could save you over $1,000 in federal income tax.

3. Eligibility for More Tax Credits

Filing Head of Household can also help you qualify for valuable tax credits, including:

• Child Tax Credit – Up to $2,000 per qualifying child.
• Earned Income Tax Credit (EITC) – Available to low- and moderate-income earners.
• Dependent Care Credit – Covers childcare expenses for working parents.

These credits can lower your tax bill or even result in a bigger tax refund.

Who Qualifies as a Dependent for Head of Household?

To use the Head of Household tax filing status, you must have a qualifying child or qualifying relative as a dependent.

What Is a Qualifying Child?

A child is a qualifying child if they meet these IRS qualifications:

• Relationship – Must be your child, stepchild, foster child, sibling, or grandchild.
• Residency – Must live with you for more than half the year.
• Age – Must be under 19 (or under 24 if a full-time student).
• Financial Support – You must pay more than half of their living expenses.

What If My Child’s Other Parent Claims Them?

If you share custody, only one parent can claim Head of Household status.

You may still qualify for Head of Household even if the noncustodial parent claims the child as a dependent if:

• The child lives with you more than half the year.
• You meet all other IRS requirements for HOH filing.

Can a Parent or Relative Be a Qualifying Dependent?

Yes, a parent, grandparent, sibling, or other relative can be a qualifying dependent if:

• They live with you for more than half the year (parents do not have to live with you).
• Their income is below $4,700 (for tax year 2024).
• You pay more than half their support, including housing, food, and medical expenses.

Example: If you pay for a parent's assisted living facility, and they earn less than $4,700, you may qualify for Head of Household even if they don’t live with you.

Further Reading: Learn about claiming dependents in your tax return

Key Takeaways

• Filing taxes as Head of Household provides a generous tax advantage, including lower tax rates and higher standard deduction amounts than the single filing status.
• To qualify, you must pay more than half the cost of keeping a home for a qualifying person and be unmarried or considered unmarried by the end of the tax year.
• Head of Household vs. Married Filing Jointly: Filing jointly with a spouse may offer better tax benefits, but HOH status is often better than filing as single or married filing separately.
• If you claim a qualifying child or dependent and meet IRS guidelines, you may also claim the Earned Income Tax Credit and other tax credits to reduce your tax liability.
• For the best tax preparation, review your filing status based on your family and financial situation or consult a tax professional to ensure you maximize your individual tax return.

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