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The head of household filing status was created in 1951 to acknowledge the additional financial burdens faced by single people caring for dependents. [ 3 ] [ 1 ] Consequently, it provides single parents and other people caring for qualifying dependents with a larger standard deduction and preferential tax rates compared to single filers ...
Determine if filing as head of household or single is better for you as an unmarried person and discover the qualifications and advantages of filing in each category.
Plus, for a head of household filer this income level falls into the 12% tax bracket, significantly below the bracket that applies to single filers with this income.
The head of household status can lead to a lower taxable income and greater potential refund, but to qualify, you must meet certain criteria.
Filing as a head of household can have substantial financial benefits over filing as a single status taxpayer. As a head of household, one may obtain a more generous tax brackets and larger standard deductions. [14] There are many special rules and exceptions applicable to head of household filing status. [15]
There are currently five filing statuses for filing federal individual income taxes: single, married filing jointly, married filing separately, head of household, and qualifying widow(er). [19] The filing status used is important for determining which deductions and credits the taxpayer qualifies for.
IRS rules specify that to claim head of household, your child must live with you for more than half the year. Following that, only one divorced parent would be able to claim head of household if ...
Single individuals may be eligible for reduced tax rates if they are head of a household in which they live with a dependent. Taxable income is defined in a comprehensive manner in the Internal Revenue Code and tax regulations issued by the Department of Treasury and the Internal Revenue Service . [ 10 ]