Once upon a time, I used to be a bachelor. It’s hard to remember that far back sometimes, but the memories I do have are pretty good! Except the part where I had family always living with me. Some had fallen on hard times and others were simply attracted to the idea of staying as close to family as possible, even if that meant making my living room their bedroom. I was a push-over. I took care of them and helped cover their expenses. Sometimes they got on my nerves, but the family dinners, the games, and the parties were always fun! Having graduated with an accounting degree I realized quickly that I could take advantage the situation that those who called my couch their own had put me in. When it came to taxes, Head of Household had become an option for me. I met the criteria to qualify for a larger standard deduction, as well as falling into wider tax brackets, making my life a little easier. In addition, I had all these extra exemptions to claim! The refunds were amazing!
While this story isn’t true in the slightest, the benefits of filing as Head of Household definitely exist! However there are a few criteria that must be met in order to qualify.
An individual must:
- Be unmarried or considered unmarried as of the last day of the tax year
- Have paid more than half the cost of keeping up a home for the tax year
- And in most cases, have a qualifying person who lived with the head in the home for more than half of the tax year.
There are a few more specific rules which help determine who is a qualifying person. In addition, these rules are a little different if the qualifying person is a dependent parent.
If you have any questions, my line is always open, except for when it’s not, at (763) 786-7899.