When it comes time to file your taxes, you may be wondering what head of household is and why you should or should not claim it. If you have never heard of the term, you are not alone as many people have not.
It is important to explore all of your options even if you have never heard of some. This is because you may find that qualifying as head of household is best when you are single, but it is not better if you are married filing separate.
Seeking professional help from a tax agent can help you better understand where you need to be when it comes to your taxes and how you should be filing.
Understanding What Head of Household Means
You must meet certain requirements before you can file head of household, which means that many people may not even qualify to consider it.
Some of the requirements include:
You cannot be married
The person you claim must be qualifying and have lived in your home
You paid more than half of the costs to upkeep the home you are in
When the requirement talks about a qualifying person, this person must be a foster child, biological child, or a stepchild. In addition, you must be able to make the claim for the child, which means that the custodial parent or biological parent cannot claim the child on their tax return.
Reasons You Might Not Receive the Status of Head of Household
There are a number of reasons why you may not be able to claim the head of household status. It is important that you explore all of your options and understand all of the requirements so that you are not bombarded with surprises along the way.
Below, we will go over some of the reasons why you may not qualify for the head of household status.
You’re Not Considered Unmarried
To be considered unmarried, you can be married, but your spouse must live outside of the home for more than six months. If you attempt to claim head of household, but your spouse has lived in the home within the last six months, you will be considered married.
Until you are considered officially divorced or you have a legal separation, you must live apart to be able to claim this status.
Your Child Disqualifies You
If you have a child who is not attending school, is over the age of 19, and makes the minimum amount of income, then you will not qualify for the status. You must have a qualifying child who is under the age of 19, in school, and does not make income at or above the threshold limit.
The Qualifying Dependent Did Not Live in the Home for the Required Length of Time
If the dependent you plan to claim did not reside in your home for a minimum of half of the year, you will not be able to claim the head of household status. This means that the child would need to live with you for 183 days out of the year for you to be eligible to claim the status.
The Qualifying Dependent is a Non-Relative
Another thing to keep in mind is that a qualifying dependent cannot just be anyone who lives in your home and the dependent must be related to you directly. For instance, you cannot claim one of your friends or your aunt or cousin as a qualifying dependent.
In fact, unrelated children do not count for the status, unless they are considered an eligible foster or adopted child.
While the head of household status may seem difficult to get, it can help you save on your taxes. It is important that you are only claiming this status if you are truly eligible to receive it. If you falsely claim it, you may face a fine or penalty from the IRS.
When it comes time to file your taxes, if you do not know much about them or you have questions about being the head of household, speak with your local tax agent as he or she can help guide you in the right direction and help you make an informed decision about your taxes and filing status.
Stephen Elmore