If you were divorced on December 31 of last year, then you are considered divorced for the entire year in the eyes of the IRS. Benefits In short, although it may be much more difficult to decipher whether or not you qualify for head of household, if you do, the tax breaks are significant.
The answer is simple — you either qualify for one status or the other.
More Favorable Tax Rates. Make sure you do your research and get it right the first time. The cost of my monthly child support check is significantly higher than what my actual costs were to raise my child.
As it turns out, for last year, I qualified for head of household. Their gross income must be less than your federal exemption amount for that year, and you must have had provided more than half the support of that person during the calendar year.
Your legal, marital status on the last day of any tax year will basically determine your filing status for that entire year.
Qualifying relatives[ edit ] Other than a father or mother, the following types of relationships may qualify a dependent as a qualifying person for head of household purposes: If you do qualify for head of household status, then file that way! The person must be under 19 years of age, or a full-time student under the age of Your return should be much easier to compile.
In very limited instances, you may qualify to file as head of household even if you are still legally married. Keep these points in mind as you read on. Son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law. In fact, they are so specific that I am not able to outline every single qualifier in this article.
For Example a year-old full-time student does not qualify as a child but may qualify as a Qualifying Relative if the tests are met. Housing Costs You must also pay more than half the costs for the maintenance of the home in which you and your qualifying dependent lived for more than half the year.
Brother, sister, half-brother, half-sister, stepbrother, stepsister. Any of these relationships that was established by marriage is not ended by death or divorce. He did not meet the requirements as a qualifying child for anyone else, and also lived with me for more than half the year.
What are your thoughts on filing single vs. Your Status Carries Over. Head of Household Filing Status Qualifications vs. This will help keep your federal income tax withholding accurate.
If the tests are met you could file as single or married filing separately and claim an exemption for the non qualified child. Ultimately, with these benefits, it is clear that filing as head of household is a much better option than filing as single.
However, the taxpayer must be able to claim the exemption for the father or mother. By filing under an incorrect status, you risk having your entire return rejected by the IRS, or being subject to additional taxes, interest, and penalties.
Additionally, you can look forward to a less complex return as you are only filing your taxes based upon your own personal tax documents.
As someone who recently divorced and is now a single parent, I can tell you that every penny counts! You get more favorable tax rates because, as a head of household filer, you qualify for lower tax brackets depending on your income than you would if you filed single.
Qualifying relative other than a father or mother that person lived with the taxpayer for more than half the year and is related in one of the ways listed below, and the taxpayer can claim an exemption for that person a qualifying person.
Qualifying relative who is a father or mother the taxpayer can claim an exemption for that person a qualifying person. But, if you do have to file as single, there is a silver lining: You might even be able to use the EZ form rather than the standard tax form.
They must have lived with you for more than half the year and not have provided for more than half of his or her own support. Your benefits are sure to be worth the effort. Be sure to investigate the matter thoroughly.
Filing as Head of Household — Qualifications The rules for being eligible for head of household are complicated, extensive, and very specific.
See Table 5 Pub Less Paperwork to Dig For.Learn more about the head of household filing status and how it differs from filing single. Find out what qualifications you need and the benefits you get.
Having dependents can cut your taxes a number of ways, including letting you file as head of household and by boosting your Earned Income Credit. Here are all the rules. Instructions to complete the Head of Household Single field found in child care services reports. Head of Household: Money Management for Single Parents [Kara Stefan] on fresh-air-purifiers.com *FREE* shipping on qualifying offers.
Written by a veteran financial writer who is also a single parent, this 5/5(1).
Is single or head of household the best tax filing status? Compare single and head of household and find which is the best filing status for you. Head of Household is a filing status for than taxpayers using Single or Married claim the child's exemption is that the noncustodial parent is claiming.Download