HEAD OF HOUSEHOLD (PART I) DO I QUALIFY? Head of Household (HOH) filing status (simplified): Generally, if you were not married on the last day of the tax year and you paid >50% of the household expenses for a “home” where you and your child* (or another “dependent”) lived you will qualify. BONUS 1: This is true even if your “ex” claims the child as a dependent that year, typically per divorce decree BONUS 2: If you’re using your parent to qualify as a HOH he/she didn’t have to live with you; you did still had to pay >50% of your parent’s living costs BONUS 3: “Home” is often misinterpreted to mean a stand-alone property you mortgaged. Not so. Your “home” can be a rental; you may have even shared a house with other person(s) but the key is that you were legally obligated to pay your portion of the monthly rent that legally entitled you to use a portion of a bigger place as your legal residence. That certainly qualified as your “home” in the HOH sense (char limit; plz see part II)
HEAD OF HOUSEHOLD (PART II) Do I Qualify? (continued from a previous post) BONUS 3: two single parents, each with their own qualifying (different) child (or another qualifying dependent), legally renting separate portions of the same residence (e.g. a rental house with 2 tenants, each under separate rental agreement) may each qualify for HOH as long as they meet all the requirements and maintain good expense records. Make sure you understand the rules and you are thorough in following them. As with all tax positions, your ability to fully substantiate your position will be a key here if you were to get audited. IS HOH WORTH IT? It is definitely worth it because HOH tax rate will usually be lower than the rates for single or married filing separately. You will also receive a higher standard deduction. DISCLAIMER: actual rules are a bit more complicated so please make sure you do thorough research and or consult a tax pro before you file.
Thanks! Your answer is awaiting moderation.