Head of Household (HOH)
What Is Head of Household (HOH)?
Taxpayers might file tax returns as head of household (HOH) on the off chance that they are unmarried and pay the greater part the cost of supporting and housing a qualifying person. Taxpayers eligible to group themselves as a HOH get higher standard deductions and lower tax rates than taxpayers who file as single or married filing separately.
Figuring out Head of Household (HOH)
Head of household is a filing status available to taxpayers who meet certain qualifying thresholds. They must file separate individual tax returns, be viewed as unmarried, and have a qualifying dependent, like a child or parent. Further, the HOH must pay more than one-half the cost of supporting the qualifying person and more than one-half the cost of keeping up with that qualifying person's primary home.
The IRS gives a breakdown of what comprises a qualified person in Table 4 of Publication 501.
Unmarried
To be considered unmarried, the HOH must be single, divorced, or viewed as unmarried. For instance, married taxpayers would be viewed as unmarried on the off chance that they didn't live with their spouse during the last six months of the tax year. The status further expects that the HOH meet both of these two requirements:
- The HOH is married to a nonresident alien whom they choose not to treat as a resident alien.
- The HOH is legally separated under a divorce or separate maintenance decree by the last day of the tax year.
Married taxpayers are thought of as unmarried in the event that they have not lived with their spouse throughout the previous six months of the tax year.
Monetarily support a qualifying person
A HOH must pay for more than one-half of the cost of a qualifying person's support and housing costs. The HOH must likewise pay more than one-half of the rent or mortgage, utilities, repairs, insurance, taxes, and different costs of keeping up with the home where the qualifying person resides for the greater part of the year. The home must be the taxpayer's own home except if the qualifying person is the taxpayer's parent and the house is the property of that parent.
In the event that the qualifying person is a parent who lives at another address, it's as yet conceivable to file as head of household — gave they are dependent on you and you cover the greater part the cost of keeping up their home.
Personal exemption suspended
The enactment of the Tax Cuts and Jobs Act of 2017 (TCJA) brought about the suspension of the personal exemption through 2025. A while ago when there was one, HOH filers must have the option to claim a exemption for their qualifying person. Taxpayers could release their exemption to a noncustodial parent in a divorce continuing or a legal separation agreement and stay eligible to file as a HOH.
Instances of Filing as Head of Household (HOH)
Filing as a HOH can give critical savings to taxpayers. Below we compare the tax burden for an individual earning $70,000 utilizing the different filing situations with.
HOH versus single or married filing separately
For 2021 tax returns, which are due April 2022, the HOH has a standard deduction of $18,800, decreasing their $70,000 taxable income to $51,200. From that amount, $14,200 will be taxed at 10%, and $37,000 at 12%, bringing the total tax bill to $1,420 + $4,440 = $5,860.
In comparison, a taxpayer filing as single or married filing separately meets all requirements for a standard deduction of $12,550, decreasing their taxable income from $70,000 to $57,450. Of that $57,450, $9,950 will be taxed at 10%, $30,574 at 12%, and the excess $16,926 at 22%, bringing about a total tax bill of $995 + $3,668.88 + $3,723.72 = $8,387.60.
Along these lines, filing as a HOH saved this speculative taxpayer $2,527.60.
For the 2022 tax year, these savings will increase even more as income limits are adjusted for inflation, and the standard deduction rises $600 for HOH to $19,400, versus $400 to $12,950 for single filers.
| 2022 Tax Brackets for Single Filers, Married Couples Filing Jointly, and Heads of Households | |||
|---|---|---|---|
| 2022 Tax Rate | For Single Filers | For Married Individuals Filing Joint Returns | For Heads of Households |
| Â 10% | $0 to $10,275 | $0 to $20,550 | $0 to $14,650 |
| Â 12% | $10,276 to $41,775 | $20,551 to $83,550 | $14,651 to $55,900 |
| Â 22% | $41,776 to $89,075 | $83,551 to $178,150 | $55,901 to $89,050 |
| Â 24% | $89,076 to $170,050 | $178,151 to $340,100 | $89,051 to $170,050 |
| Â 32% | $170,051 to $215,950 | $340,101 to $431,900 | $170,051 to $215,950 |
| Â 35% | $215,951 to $539,900 | $431,901 to $647,850 | $215,951 to $539,900 |
| Â 37% | $539,901 or more | $647,851 or more | $539,901 or more |
Features
- The qualifying person must generally be either a child or parent of the HOH.
- To meet all requirements for head of household (HOH) tax filing status, you must file a separate individual tax return, be thought of as unmarried, and have a qualifying child or dependent.
- The HOH must pay for more than one-half of the qualifying person's support and housing costs.
FAQ
Is It Better to File as Single or Head of Household?
For tax purposes, being head of household is better. Head of household filers have a lower tax rate and higher standard deductions than single filers.
What Is the Standard Deduction for Head of Household?
In the 2021 tax year, the portion of income not subject to tax for heads of households is $18,800. In the 2022 tax year, that threshold increases to $19,400.
Who Qualifies as Head of Household?
To file taxes as head of household, you must be viewed as unmarried, pay in some measure half of the household expenses, and have either a qualified dependent residing with you the greater part the year or a parent for whom you cover half of housing costs.
