About the Head of Household Filing Status
An unmarried individual who is able to file income taxes using the Head of Household filing status will typically receive a larger income tax return than an individual filing as single. You must be substantially providing support for another person for more than half of the year. Usually the person you are providing for is a child who lives in your home, but others may qualify as well.
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Identification
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You must be unmarried or considered unmarried on the last day of the year to file using Head of Household filing status. You must have paid for more than half of the cost of keeping up the home for the year. You must have a qualifying child or relative. In most cases, the qualifying person had to live with you. However, there is an exception to this rule for a dependent parent.
Time Frame
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If a child is born to you at anytime during the year before December 31, you may claim the child as a dependent and file as Head of Household if you meet the other criteria. If a child is placed with you for the purpose of adoption before December 31st, you may file as Head of Household as long as the other criteria are met. If you meet other criteria, are providing for an unrelated child or an unmarried adult, and the person meets the qualifying child or relative test, you may file as Head of Household.
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Benefits
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An unmarried individual under the age of 25 who is working does not qualify for Earned Income Tax Credit unless that individual qualifies as Head of Household filing status. EITC provides additional money to low-income wage earners by adding funds to their income tax refunds. The income tax owed for Head of Household status earnings is less than the income tax owed for single status earning. The standard deduction that you subtract from your gross income is more for Head of Household filing status than it is for Single filing status. A person qualifying as Head of Household is also eligible for the credit for child and dependent care expenses as well as excluding dependent care benefits from income.
Considerations
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You must have the qualifying dependent's Social Security or Tax Identification Number in order to claim the qualifying person on your income tax. If your child is placed with you for adoption and does not yet qualify for a Social Security Number because you are in the "supervised placement stage of the adoption," you may have to file as single. Later, file an amended tax return once you finalize your adoption and are able to receive a Social Security Number listing you as the parent.
Warning
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Those claiming children that are not legally their dependents, may be subject to fines and penalties if caught. If more than one person claims the same dependent, the IRS has a set of criteria to determine which person will be allowed to claim the dependent, and the Head of Household filing status because of that dependent. The other individual's claim will be disallowed, and that individual will pay the higher tax rate of the single filer.
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