What is the Head of Household (HOH)?
Unmarried taxpayers who support and house an eligible individual file as heads of household. Unmarried taxpayers who pay over half the expense of maintaining and housing an eligible individual can file tax returns as head of household (HOH).
Single or separated people with dependents might benefit financially from the head of household filing status. HOH taxpayers have more significant standard deductions and lower tax rates than single or married taxpayers filing separately.
Understanding Household Head
Head of household filing status is available to taxpayers who satisfy specific requirements. Unmarried individuals must file separate tax returns and have a qualified dependent, such as a child or parent. The HOH must cover over half the costs of supporting and maintaining the eligible person’s primary residence. Who can file?
Table 4 of Publication 501 outlines the IRS definition of a qualified person.
Unmarried
To be deemed unmarried, the HOH must be single, divorced, or perceived to be unmarried. If a married taxpayer does not reside with their spouse for the last six months of the tax year, they are considered unmarried. The status requires the HOH to fulfill any of these two requirements:
- Although married to a non-resident immigrant, the HOH chooses not to consider them residents.
- A divorce or separate maintenance decree legally separates the HOH by the end of the tax year.
Not living with a spouse for six months of the tax year makes a married taxpayer unmarried.
Financially Aid a Qualified Person
An HOH must cover over half of an eligible person’s assistance and housing expenditures. The HOH must cover over half of the costs of maintaining the house where the qualified person resides for more than half the year, including rent or mortgage, utilities, maintenance, insurance, taxes, and other expenses. A taxpayer must own a house unless a qualified individual is a parent and the home is their property.
If the qualifying individual is a parent who lives elsewhere and you pay more than half their home maintenance, you can file as head of household.
Personal Exemption Suspended
The Tax Cuts and Jobs Act of 2017 (TCJA) suspended the personal exemption until 2025. HOH filers formerly needed to claim an exemption for their eligible individual. Taxpayers can transfer their exemption to a noncustodial parent during divorce or legal separation and still file as a HOH.
Head of House vs. Single
If you qualify, filing as head of household instead of single might have benefits. This has two primary causes:
- The heads of household tax brackets are broader than those for singles. Single filers can reach the top of the 12% bracket with $41,775 in 2022 ($44,725 in 2023), while heads of households can have $55,900.
- Second, heads of household get a more significant standard deduction. This allows you to make more before taxes. For single filers, the standard deduction is $12,950 in 2022 ($13,850 in 2023), whereas HOH filers get $19,400 ($20,800).
Filing as Head of Household Examples
Taxpayers save a lot by filing as HOH. Below, we evaluate the tax burden for a $70,000 earner with different filing statuses.
Single or married filing separately
For the 2022 tax returns due in April 2023, the HOH has a $19,400 standard deduction, decreasing their $70,000 taxable income to $50,600. Taxes on $14,650 are 10%, and $35,900 are 12%, totaling $5,773.
A taxpayer filing as a single or married filing separately can reduce their taxable income from $70,000 to $57,050 by taking advantage of a standard deduction of $12,950. Taxes on the $57,050 will be $10,275 at 10%, $31,499 at 12%, and $15,276 at 22%, totaling $8,168.1.
This hypothetical taxpayer saved $2,395.10 by filing as HOH.
Adjustments for inflation will enhance savings in 2023, with the standard deduction increasing by $1,400 for HOH to $20,800 and $900 to $13,850 for single filers.
2022 Tax Brackets for Single Filers, Married Couples Filing Jointly, and Heads of Households
| 2022 Tax Rate | Single filters | For Married Individuals Filing Joint Returns | For Heads of Households |
| 10% | 0 to $10,275 | $0 to $20,550 | $0 to $14,650 |
| 12% | $10,276 to $41,775 | $20,551 to $83,550 | $14,651 to $55,900 |
| 22% | $41,776 to $89,075 | $83,551 to $178,150 | $55,901 to $89,050 |
| 24% | $89,076 to $170,050 | $178,151 to $340,100 | $89,051 to $170,050 |
| 32% | $170,051 to $215,950 | $340,101 to $431,900 | $170,051 to $215,950 |
| 35% | $215,951 to $539,900 | $431,901 to $647,850 | $215,951 to $539,900 |
| 37% | $539,901 or more | $647,851 or more | $539,901 or more |
| 2023 Tax Brackets for Single Filers, Married Couples Filing Jointly, and Heads of Households | |||
| 2023 Tax Rate | Single filters | For Married Individuals Filing Joint Returns | For Heads of Households |
| 10% | 0 to $11,000 | $0 to $22,000 | $0 to $15,700 |
| 12% | $11,001 to $44,725 | $22,001 to $89,450 | $15,701 to $59,850 |
| 22% | $44,726 to $95,375 | $89,451 to $190,750 | $59,851 to $95,350 |
| 24% | $95,376 to $182,100 | $190,751 to $364,200 | $95,351 to $182,100 |
| 32% | $182,101 to $231,250 | $364,201 to $462,500 | $182,101 to $231,250 |
| 35% | $231,251 to $578,125 | $462,501 to $693,750 | $231,251 to $578,100 |
| 37% | $578,126 or more | $693,751 or more | $578,101 or more |
Who Could Be Household Head?
You must be single, pay at least half of household expenditures, and have an eligible dependent living with you for more than half the year or a parent for whom you cover half of the housing costs to file taxes as head of household.
Should I claim to be single or head of household?
For tax purposes, the head of household is usually best. Heads of households pay less tax and have more basic deductions.
The Standard Head of Household Deduction?
The 2022 tax-free income for heads of families is $19,400. That barrier rises to $20,800 in 2023.
The Verdict
The head of household (HOH) makes tax returns. Unmarried taxpayers who house and support an eligible individual utilize it. Head of household (HOH) tax filing status requires a separate individual tax return, unmarried status, and a qualified child or dependent.
HOH filing status helps singles or separated people with dependents financially. If you qualify, being the head of the household is usually best. Heads of households pay less tax and have more basic deductions.
Conclusion
- Unmarried taxpayers who support and house an eligible individual file as heads of household.
- Head of household (HOH) tax filing status requires a separate individual tax return, unmarried status, and a qualified child or dependent.
- Qualifying people are usually HOH children or parents.
- The HOH must cover over 50% of the qualified person’s assistance and housing expenditures.
- HOH filing status helps singles or separated people with dependents financially.
