What Is the Definition of Head of Household?

A taxpayer’s filing status is a fundamental component of their annual tax return, defining the applicable tax rates and deductions. Among the five available statuses, Head of Household is designed for unmarried individuals who support a qualifying person. This status generally provides a lower tax rate and a higher standard deduction compared to filing as Single or Married Filing Separately, making it an advantageous option for those who meet the specific criteria set by the Internal Revenue Service (IRS).

The Unmarried Status Requirement

To qualify for Head of Household, a taxpayer must be considered unmarried on the last day of the tax year, which is December 31 for most individuals. This requirement is straightforward for those who are single, divorced, or legally separated under a state court’s decree of separate maintenance.

The IRS also provides a pathway for individuals who are still legally married to be “considered unmarried” for tax purposes. This special provision applies if the taxpayer files a separate tax return from their spouse and their spouse did not live in the home during the last six months of the tax year. Temporary absences, such as for business, military deployment, or medical treatment, generally do not count as the spouse living apart. This rule acknowledges situations where spouses live separately and one financially maintains a household for a child.

The Home Maintenance Cost Test

A central requirement for the Head of Household filing status is that the taxpayer must have paid more than half of the cost of keeping up a home for the year. The IRS has specific definitions for what constitutes the cost of maintaining a home. These expenses encompass rent or mortgage interest, property taxes, home insurance, repairs and maintenance, utilities such as electricity and gas, and the cost of food consumed within the home.

Conversely, expenses that are personal in nature are explicitly excluded from this calculation. These non-qualifying costs include clothing, education expenses, medical treatments, life insurance premiums, and transportation costs. To determine eligibility, a taxpayer would add up all the qualifying household expenses for the year and then determine the portion they personally paid. For example, if the total cost of rent, utilities, and food for the year was $30,000, the taxpayer must have paid more than $15,000 of that amount from their own funds.

The Qualifying Person Test

Beyond the marital and financial tests, a taxpayer must have a qualifying person who lived with them in the home for more than half of the year. Temporary absences, such as for school, vacation, or medical care, are generally permitted and do not disqualify the person from meeting the residency test. The rules for who can be a qualifying person are detailed and fall into two distinct categories.

Qualifying Child

A qualifying child must meet four specific tests: relationship, age, residency, and support.

• Relationship: The relationship test requires the child to be the taxpayer’s son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of them.
• Age: The age test mandates the child be under age 19 at the end of the year, a full-time student under age 24, or any age if permanently and totally disabled.
• Support: The support test requires that the child did not provide more than half of their own support for the year.

Qualifying Relative

A qualifying relative must meet a different set of four tests: not a qualifying child, member of household or relationship, gross income, and support.

• Not a Qualifying Child: The first test ensures the individual is not the qualifying child of any other taxpayer.
• Member of Household or Relationship: The second test requires the person to either live with the taxpayer all year as a member of their household or be related to the taxpayer in one of the ways specified by the IRS, which includes parents, grandparents, and in-laws.
• Gross Income: The gross income test states that the relative’s gross income for the year must be less than $5,050.
• Support: The final test requires the taxpayer to have provided more than half of the relative’s total support for the year.

Special Rule for Dependent Parents

The residency requirement for a qualifying person has a significant exception that applies specifically to a taxpayer’s dependent parent. Under this provision, a taxpayer may be eligible to file as Head of Household even if their parent does not live with them. To meet this exception, the taxpayer must be able to claim their parent as a dependent.

Additionally, the taxpayer must pay for more than half of the cost of keeping up the parent’s main home for the entire year. This rule is narrowly focused and only applies to a dependent mother or father. It does not extend to other qualifying relatives, such as grandparents or siblings, who must meet the standard residency test of living with the taxpayer.