Head of Household Tax Deduction Definition
Individuals who meet certain requirements can file their federal tax return as a Head of Household, rather than as a single or married person filing separately.
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Marital Status
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You must be unmarried on the last day of the year. If you meet certain requirements, you may be considered unmarried for tax purposes.
Keeping a Home
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You must have paid for more than half of the cost of your home in the past year.
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Qualifying Person
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A qualifying person, such as a child or dependent parent, must live with you over six months of the year. Exceptions are children that are away at school and dependent parents who live in a rest home of which you pay more than half the cost. The IRS has certain tests to determine if a child is a qualifying person.
Tax Rate
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If you qualify as a Head of Household, your tax rate will be lower than it would be for filing as single or married filing separately.
Standard Deduction
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Head of Household can claim a higher standard deduction than someone filing as single or married filing separately. The standard deduction changes each year for inflation. In 2009, the standard deduction amount for a Head of Household was $8,350.
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References
Resources
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