lead of Household international relations and security network ’ t precisely a fancy title, it ’ s a specific term that has tax implications, and knowing how to file your taxes can save you, or cost you, money on your tax bill .
here is a short guidebook to filing your taxes as a Head of Household .
Are You a Head of Household?
A Head of Household is person who is considered unmarried, pays for more than half of the family ’ s expenses, and has a qualifying child or dependent. You must be all three things to qualify. If you are married, then you must file as Married Filing Jointly or Married Filing Separately. If you are unmarried but give less than half of the family ’ s expenses or you don ’ t have a modify subject, then you file as a single file clerk.
The entirely one with a moment of ambiguity is what is “ considered unmarried. ” This is something that must be true on the last day of the tax class .
To qualify, you must file a separate tax return, paid for more than one-half of the price of maintaining your home, your spouse did not live in the home plate during the survive six months of the tax year, and your home was the chief dwelling of a child, stepchild, or foster child for at least six months. last, you have to be able to claim that child as a subject .
If you experience a irregular absence, which is when a spouse lives out of the home for purposes of going to school, military service, aesculapian treatment, or a vacation ; then you don ’ thyroxine qualify as “ considered unmarried. ” There must not be an expectation that the spouse returns after the absence .
For the first rule, paying for more than half of family expenses, you should take all family expenses into account. This includes your mortgage or rent payment adenine well as maintenance, insurance, utilities, repairs, and tied food. Everything to maintain the home is included .
last, the qualifying child or subject is one that has a clear definition a well. For qualifying children, they must be unmarried or, if they are married, eligible for you to claim as a dependent.
You can besides claim your beget or father as a dependent. otherwise, they must be related to you and live with you for more than half the year. If you can claim them as a subject, then they qualify for purposes of a Head of Household file status .
If you are uncertain, you can constantly use the IRS ’ mho joyride for determining your filing condition .
Tax Benefits of Filing as Head of Household
There are benefits to filing as a Head of Household such as a larger standard deduction and better tax brackets .
For the 2020 tax year, the standard deduction for a head of family is $ 18,650, compared to precisely $ 12,400 for a one filer. It ’ mho less than the standard deduction come for marry couples and surviving spouses. The tax rates are besides more favorable.
If you are considering filing as a Head of Household, be identical careful to look over the rules and ensure you satisfy them. The IRS is likely to review these very carefully to make certain you truly qualify .
TurboTax Has You Covered
Don ’ triiodothyronine worry about knowing these tax benefits. TurboTax has you covered and will ask you simple questions about you and give you the tax deductions and credits you ’ re eligible for based on your answers .
If you still have questions, you can connect live via one-way video to a TurboTax Live tax technical with an median of 12 years know to get your tax questions answered. TurboTax exist tax experts are available in English and spanish, year-round, and can besides review, sign, and file your tax rejoinder .