Head of Household Requirements

Head of Household (HOH) is one of the most valuable filing statuses available to unmarried taxpayers. It provides significant tax benefits including a higher standard deduction and wider tax brackets than Single filing status. However, HOH is also one of the most frequently audited filing statuses because many taxpayers claim it incorrectly.

Why Head of Household Matters

For 2024, the HOH standard deduction is $21,900 - that's $7,300 more than the Single standard deduction of $14,600. Combined with wider tax brackets, HOH status can save thousands in taxes annually.

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The Three Tests for Head of Household

To file as Head of Household, you must pass all three of the following tests:

Failing any one of these tests disqualifies you from HOH status.

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Test 1: The Unmarried Test

You meet the Unmarried Test if, on December 31, you were:

1. Unmarried (never married, legally divorced, or widowed), OR
2. "Considered unmarried" under special IRS rules (see below)

"Considered Unmarried" Rules

A legally married person can be "considered unmarried" and file Head of Household if they meet ALL of these requirements:

Temporary absences: Your spouse is considered to live with you during temporary absences for illness, business, military service, education, or vacation. A temporary absence does NOT break the 6-month "lived apart" requirement.

Why this matters: The "considered unmarried" rules help married individuals who are separated but not yet divorced to access the HOH benefits, provided they are maintaining a home for their child.

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Test 2: The Qualifying Person Test

You must have a qualifying person to claim HOH. Not everyone who is a dependent can make you eligible for HOH. The qualifying person rules are specific:

Who Is a Qualifying Person?

Special Rules for Qualifying Persons

Parents are unique: Your dependent parent does NOT have to live with you. You can pay for your parent's assisted living facility or separate home and still qualify for HOH if you:

• Provide more than half their support
• The parent meets the qualifying relative tests (gross income under $5,050 for 2024)

Qualifying child of divorced parents: If you are the custodial parent, the child can be your qualifying person for HOH even if the noncustodial parent claims the child as a dependent (using Form 8332). The child lived with you, so you qualify for HOH.

Married qualifying child: A married child who files a joint return with their spouse generally cannot be your qualifying person, unless the joint return was filed only to claim a refund.

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Test 3: The Cost of Household Test

You must pay more than half the cost of maintaining the home where you and the qualifying person live (or where you maintain a separate home for a dependent parent).

Costs That COUNT Toward the Test

Costs That DO NOT Count

Calculating "More Than Half"

To determine if you paid more than half:

1. Add up all household costs (both yours and others' contributions)
2. Divide by 2 to find half
3. Compare your contributions to the halfway point

Example: Total household costs = $30,000. Half = $15,000. If you paid $16,000, you pass the test.

Public assistance rule: If you receive TANF or other public assistance to help pay household costs, those amounts are included in the total cost calculation but cannot count as your contribution. You must have paid more than half from non-assistance sources.

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2024 Tax Benefits of HOH

Standard Deduction Comparison

The $7,300 additional deduction at a 22% marginal rate saves approximately $1,606 in federal taxes just from the deduction difference.

2024 Tax Bracket Comparison

Real Tax Savings Example

Taxpayer: Single parent, $60,000 taxable income

In this example, HOH saves $1,384 annually compared to Single status.

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Common HOH Errors and Audit Triggers

Head of Household is a high-audit-risk filing status. The IRS uses computer matching and document requests to verify eligibility.

Most Common Mistakes

IRS Verification Process

When the IRS questions your HOH status, you may receive Notice CP85A. The IRS may request:

• School records proving the child lived with you
• Medical records showing the child's address
• Lease or mortgage documents showing you maintained the home
• Utility bills in your name
• Tax returns for other household members

Per IRS Form 886-H-HOH, acceptable documentation includes:

• Lease agreements or mortgage statements
• Utility bills
• School or daycare records
• Medical/dental records
• Court documents (custody orders)
• Government agency letters (WIC, SNAP)

Penalties for Incorrect HOH Filing

If you incorrectly claim HOH:

1. Additional tax due - You will owe the difference between HOH and Single tax
2. Interest - From the original due date
3. Accuracy-related penalty - Potentially 20% of the underpayment if negligence or substantial understatement
4. Loss of EITC - If you also claimed EITC, you may face a 2-year ban from claiming it

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Decision Flowchart: Do You Qualify for HOH?

Step 1: Are you unmarried on December 31, OR do you meet all "considered unmarried" rules?

• No → You cannot file HOH
• Yes → Continue to Step 2

Step 2: Do you have a qualifying person?

• No → You cannot file HOH
• Yes → Continue to Step 3

Step 3: Did you pay more than half the cost of maintaining the home?

• No → You cannot file HOH
• Yes → You qualify for Head of Household!

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Exam Tips

1. Know the 3 tests cold - Unmarried (or considered unmarried), Qualifying Person, More than Half household costs
2. Parents are special - They do NOT have to live with you to be a qualifying person
3. Divorced parents - Custodial parent gets HOH even if noncustodial parent claims the exemption
4. "Considered unmarried" requires 6 months apart - July 1 through December 31
5. Count household costs correctly - Include rent, utilities, food; exclude clothing, medical, education
6. One qualifying person per taxpayer - A child cannot qualify two taxpayers for HOH