What is Head of Household?

It is important to select the proper filing status for federal tax returns.

Filing federal income taxes and having the proper income taxes withheld is based on multiple factors. One of the primary determinations in the amount of taxes you owe is based on your filing status.

Significance

The Internal Revenue Service (IRS) utilizes filing status to determine income tax and calculate standard deductions. The head of household filing status is used for a taxpayer who is responsible for the primary income and expenses of a household. The head of household standard deduction is higher than for a single person. For 2009, the standard deduction for a single person was $5,700 and for a head of household the amount was $8,350.

Considerations

To be considered as a head of household, the IRS states the taxpayer must be unmarried or considered unmarried by the last day of the tax year the taxpayer paid for at least one-half the costs associated with maintaining a home and the taxpayer must have at least one qualified dependent that lives with the ta payer for at least 50 percent of the year.

Warning

To claim head of household status the taxpayer must have at least one qualified dependent that lives with the taxpayer for at least one-half of the year. The IRS considers a qualified dependent as a child, stepchild, adopted child, dependent relative such as parent or sibling provided they satisfy all other IRS mandates regarding dependents.

References

• Internal Revenue Service: 2009 Inflation Adjustments
• Internal Revenue Service: Publication 501