Head of Household Tax Filing Status

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Definition of 'Head of Household Tax Filing Status'

"Head of Household" is a filing status used by taxpayers in the United States who are unmarried and provide financial support for a dependent, such as a child, parent, or other relative. This filing status is different from "Single" and can result in a lower tax liability for the taxpayer.

The tax code for head of household generally allows for higher standard deductions and lower tax rates compared to single filers. In order to qualify for head of household status, you must meet certain requirements, including:

You must be unmarried or considered unmarried on the last day of the tax year.
You must have paid more than half the cost of maintaining a home for yourself and a qualifying person, such as a child or parent, for more than half the year.
The qualifying person must meet certain relationship, age, and residency requirements.
The tax code has different tax brackets for head of household filers, which determine the tax rate at which their income is taxed. The tax brackets for head of household are generally more favorable than those for single filers, which can result in a lower tax liability for eligible taxpayers.

Filing as head of household can provide significant tax benefits for eligible taxpayers. It's important to understand the requirements and ensure that you qualify before selecting this filing status.

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