Head of Household

Head of Household

The term Head of Household refers to a specific filing status in the U.S. tax system that allows an individual to benefit from a higher standard deduction and more favorable tax rates compared to filing as a single taxpayer.

To qualify as Head of Household, a taxpayer must meet several criteria:

1. The individual must be unmarried or considered unmarried on the last day of the tax year.
2. The taxpayer must have paid more than half the cost of maintaining a home for the year.
3. The home must be the principal residence for a qualifying person, such as a child, parent, or dependent relative, for more than half of the year.

By filing as Head of Household, eligible taxpayers can reduce their taxable income, which may lead to a lower tax liability. For example, for the tax year 2023, the standard deduction for a Head of Household is $20,800, compared to $13,850 for single filers.