Understanding Taxes -Filing Status

Module 5: Filing Status

Page 6 of 10

Tax rates for head of household are lower than those for single taxpayers.

In general, taxpayers use head of household filing status if they

are unmarried or considered unmarried as of the end of the year, and
provide more than half the cost of keeping up a home for a qualified person for more than half of the year. (Dependent parents do not have to live with taxpayer.)

Keeping up a home includes rent, mortgage interest, taxes, insurance, repairs, utilities, paying for domestic help, and food eaten in the home.

Caution! Do research or get professional advice before claiming head of household filing status. Make sure that the taxpayer meets all of the qualifications. Some of the qualifications are confusing. For example, some qualified persons have to:

live with the taxpayer, but others do not
be the taxpayer's dependent, but others do not
be a blood relative, but others do not

Also, some married persons with dependent children who live apart from their spouses may be able to claim head of household filing status.