Head-of-the-household filing status has a more favorable standard deduction amount and lower tax brackets than filing single status.
The Difference Between Filing Single & Head Of House – Here’s What You Need To Know (PHOTO: SmartAsset.com)
Head Of House Vs. Single
The difference between the head of household and single tax filing is that the taxpayers who are eligible for head of household tax filing get higher standard deductions and more relaxed tax rates than the taxpayers who file as single. According to IRS HOH’s tax filer standard deduction compared to a single tax, filer is $6,250. Moreover, a taxpayer that files as a single pays $1,450 and has more increased tax than the head of the household tax filer.
Head-of-household filers can have a lower taxable income and greater potential refund than the single filing status. The head of the household status can claim approximately 50% bigger standard deduction than single filers ($18,800 vs $12,550). Heads of households can also use wider tax brackets that allow more of their taxable income to drop into lower tax brackets.
What is a Head of Household?
One must file the tax return as a separate individual to qualify for the head of household tax filing status. Additionally, he/ she should be unmarried and entitled to the exemption for a qualifying person.
- A taxpayer can be considered unmarried for the whole year if he/ she is single, divorced, or unmarried on the last day of the tax year. Additionally, married taxpayers can also be considered unmarried if they didn’t live with their spouse during the last 6 months of the tax year.
- Generally, the qualifying person is either a child or parent of the taxpayer, such that the taxpayer paid more than 50% of the support and housing costs for the qualifying person.
What is Single?
An unmarried taxpayer who doesn’t qualify for any other filing status files his/ her tax returns under the tax filing status of single. IRS said, that a single tax filer is considered unmarried if he/ she is unmarried, divorced, or separated from a spouse under any legal order on the last day of the tax year. Also, despite being married, one can still be considered unmarried if he/ she didn’t stay with the spouse for the last 6 months of the tax year.
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