Head of household is a term used in the context of taxes to designate a specific filing status for unmarried individuals who provide financial support for a household that includes a qualifying person.
The head of household refers to a filing status that provides a larger standard deduction and potentially lower tax rates, resulting in reduced tax liability.
To file as Head of Household, you must be unmarried, have a qualifying dependent, and pay more than half the cost of maintaining a home for yourself and your dependent.
For the tax year 2023, the standard deduction for Head of Household filing status is $20,800 for individuals who are considered unmarried and have a qualifying child or dependent.
Benefits of filing as Head of Household include a potentially lower tax rate, a higher standard deduction, and eligibility for certain tax credits and deductions such as CTC or EITC.
The required documents for claiming Head of Household typically include your dependent's Social Security number, proof of qualifying relationship, & records of household expenses.