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Website Accessibility CertificationAgencyCalifornia Franchise Tax BoardCertification dateJuly 1, 2021ContactAccessible Technology ProgramThe undersigned certify that, as of July 1, 2021 the internet website of the Franchise Tax Board is designed, developed and maintained to be in compliance with California Government Code Sections 7405 and 11135, and the Web Content Accessibility Guidelines 2.1, or a subsequent version, as of the date of certification, published by the Web Accessibility Initiative of the World Wide Web Consortium at a minimum Level AA success criteria. June 28, 2021 Digital signature and printed name of Selvi Stanislaus Executive Officer June 28, 2021 Digital signature and printed name of John Sulenta Chief Information Officer What Is Head of Household (HOH)?Head of household is a filing status on tax returns used by unmarried taxpayers who support and house a qualifying person. Taxpayers may file tax returns as head of household (HOH) if they are unmarried and pay more than half the cost of supporting and housing a qualifying person. The head of household filing status is meant to give single or separated individuals with dependents a financial boost. Taxpayers eligible to classify themselves as an HOH get higher standard deductions and lower tax rates than taxpayers who file as single or married filing separately. Key Takeaways
Understanding Head of Household (HOH)Head of household is a filing status available to taxpayers who meet certain qualifying thresholds. They must file separate individual tax returns, be considered unmarried, and have a qualifying dependent, such as a child or parent. Further, the HOH must pay more than one-half the cost of supporting the qualifying person and more than one-half the cost of maintaining that qualifying person’s primary home. Here's who can file. The IRS provides a breakdown of what constitutes a qualified person in Table 4 of Publication 501. UnmarriedTo be considered unmarried, the HOH must be single, divorced, or regarded as unmarried. For example, married taxpayers would be regarded as unmarried if they did not live with their spouse during the last six months of the tax year. The status further requires that the HOH meet either of these two requirements:
Married taxpayers are considered unmarried if they have not lived with their spouse for the last six months of the tax year. Financially Support a Qualifying Person An
HOH must pay for more than one-half of the cost of a qualifying person’s support and housing costs. The HOH must also pay more than one-half of the rent or mortgage, utilities, repairs,
insurance, taxes, and other costs of maintaining the home where the qualifying person lives for more than half of the year. The home must be the taxpayer’s own home unless the qualifying person is the taxpayer’s parent and the home is the property of that parent. If the qualifying person is a parent who lives at another address, it's still possible to file as head of household—provided they are dependent on you and you cover more than half the cost of keeping up their home. Personal Exemption SuspendedThe enactment of the Tax Cuts and Jobs Act of 2017 (TCJA) resulted in the suspension of the personal exemption through 2025. Back when there was one, HOH filers had to be able to claim an exemption for their qualifying person. Taxpayers could release their exemption to a noncustodial parent in a divorce proceeding or a legal separation agreement and remain eligible to file as an HOH. Head of Household vs. SingleIf you qualify, there can be significant advantages to filing as head of household rather than single. There are two main reasons for this:
Examples of Filing as Head of HouseholdFiling as an HOH can provide significant savings for taxpayers. Below we compare the tax burden for an individual earning $70,000 using the different filing statuses. HOH vs. Single or Married Filing SeparatelyFor 2022 tax returns, which are due April 2023, the HOH has a standard deduction of $19,400, reducing their $70,000 taxable income to $50,600. From that amount, $14,650 will be taxed at 10%, and $35,900 at 12%, bringing the total tax bill to $1,465 + $4,308 = $5,773. In comparison, a taxpayer filing as single or married filing separately qualifies for a standard deduction of $12,950, reducing their taxable income from $70,000 to $57,050. Of that $57,050, $10,275 will be taxed at 10%, $31,499 at 12%, and the remaining $15,276 at 22%, resulting in a total tax bill of $1,027.5 + $3,779.88 + $3,360.72 = $8,168.1. Thus, filing as an HOH saved this hypothetical taxpayer $2,395.10. For the 2023 tax year, these savings will increase even more as income limits are adjusted for
inflation, and the standard deduction rises $1,400 for HOH to $20,800, versus $900 to $13,850 for single filers.
Who Qualifies as Head of Household?To file taxes as head of household, you must be considered unmarried, pay at least half of the household expenses, and have either a qualified dependent living with you more than half the year or a parent for whom you cover half of housing costs. Should I Claim Single or Head of Household Status?For tax purposes, it is almost always better to be head of household. Head of household filers have a lower tax rate and higher standard deductions than single filers. What Is the Standard Deduction for Head of Household?In the 2022 tax year, the portion of income not subject to tax for heads of households is $19,400. In the 2023 tax year, that threshold increases
to $20,800. The Bottom LineHead of household (HOH) is a filing status for tax returns. It is used by unmarried taxpayers who support and house a qualifying person. To qualify for head of household (HOH) tax filing status, you must file a separate individual tax return, be considered unmarried, and have a qualifying child or dependent. The purpose of the HOH filing status is to provide single or separated individuals with dependents a financial boost. If you qualify, it is almost always better to be head of household. Head of household filers have a lower tax rate and higher standard deductions than single filers. Who is a qualifying person qualifying you to file as head of household?Any of the following relations may count as a qualifying person: your child, stepchild, grandchild or other descendant of one of your children (or stepchildren or foster children), son-in-law, daughter-in-law, brother, sister, half-brother, half-sister, stepbrother, stepsister, brother-in-law, sister-in-law, parent, ...
Who can claim head of household 2022?You must meet all of the following on December 31 of the tax year: You were unmarried, considered unmarried, or not in a registered domestic partnership. You have a qualifying child or relative. Your qualifying person lived with you for more than 183 days in the year.
Who qualifies as a dependent for head of household?he or she lived with you more than half the year, and you can claim him or her as a dependent, and is one of the following: son, daughter, stepchild, foster child, or a descendant of any of them; your brother, sister, half brother, half sister or a son or daughter of any of them; an ancestor or sibling of your father ...
What is the minimum income to file taxes in 2022 as head of household?Head of household: $18,800 if under age 65. $20,500 if age 65 or older.
What are the IRS requirements for head of household?To file as head of household you must furnish over one-half of the cost of maintaining the household for you and a qualifying person. Therefore, only one of the parents will have contributed more than one-half of the cost of maintaining the household and be eligible to file as head of household.
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