Can You File as Head of Household? The Three Tests, Explained

Filing status is one of the first boxes on your tax return, and one of the most expensive to get wrong. Head of household gives you a bigger standard deduction and wider tax brackets than filing single, which can mean a noticeably lower tax bill. But the rules are specific, and the IRS checks them. Here is how to tell whether you qualify.

The three tests

To file as head of household, you generally must meet all three of these:

• You are unmarried, or "considered unmarried," on the last day of the year. Divorced or legally separated counts as unmarried. If you are still married, you may be considered unmarried if you lived apart from your spouse for the last six months of the year, file a separate return, and meet the other tests.

• You paid more than half the cost of keeping up your home for the year. That includes rent or mortgage interest, property taxes, utilities, repairs, insurance on the home, and groceries eaten at home. It does not include clothing, education, medical care, vacations, or transportation.

• A qualifying person lived with you for more than half the year. Usually that is your child. A dependent parent is a special case: your parent does not have to live with you, as long as you pay more than half the cost of their home, such as an assisted living facility.

Who counts as a qualifying person

The most common qualifying person is a son, daughter, stepchild, foster child, sibling, or a descendant of one of them (like a grandchild or niece) who lived with you more than half the year and meets the age or disability rules. Other relatives can qualify if you can claim them as a dependent. A boyfriend or girlfriend generally cannot make you head of household, even if you support them and can claim them as a dependent.

Common mistakes

• Both parents claiming head of household for the same child. Only the parent the child lived with for more than half the year can use that child to qualify.

• Roommates splitting costs. If you and another adult split household costs evenly, neither of you paid "more than half."

• Married and living together. If you lived with your spouse at any time during the last six months of the year, you generally cannot file as head of household.

• Temporary absences. Time a child spends away at school or in the hospital usually still counts as living with you.

Why it matters

Head of household gets a larger standard deduction than single, and more of your income is taxed at lower rates. Using the wrong status can mean a bill, interest, and possibly a penalty if the IRS corrects it later. Paid preparers are also required to ask detailed questions before choosing head of household, so expect those questions, and keep records showing who lived with you and what you paid.

Quick checklist

• Were you unmarried (or considered unmarried) on December 31?

• Did you pay more than half of your household costs? Total them up.

• Did a qualifying person live with you more than half the year (or is it a parent whose home you support)?

• Is anyone else claiming the same child?

If you can answer yes, yes, yes, and no, head of household is likely your status. If any answer is unclear, sort it out before you file.

General information, not tax advice for your specific situation.

Robert Allen Bautista, independent tax preparer and accountant, Kansas City.