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Being an adult is great. You get to be king or queen of your own castle — or head of the household, if you will.
It’s all fun and games until tax time rolls around, and then “head of the household” takes on an entirely different meaning.
Filing your taxes as head of household can seem vaguely intimidating, but it’s really nothing more than a designation by the IRS that may lower your tax bill and put more money in your pocket.
Definition of Head of Household
Head of household is a filing status the IRS uses to determine what tax bracket, tax credits and responsibilities apply to you during the course of a tax year.
To qualify as head of household, you’ll need to meet certain criteria.
1. You’re Not Married on the Last Day of the Year
Interestingly, you can be married the first 364 days of the year, but if you’re not legally married on Dec. 31, the IRS considers you unmarried for the entire year.
Don’t get any ideas about divorcing your spouse for a few days around the end of December just to file as head of household. If you turn around and get remarried any time during the following year, you’ll face tax consequences from the IRS .
The IRS also considers you unmarried for tax purposes if your home state has declared you legally separated from your spouse. Simply moving out of your shared home isn’t enough; you need to get in front of a judge to be granted a legal separation.
A court-decreed annulment also qualifies you as unmarried for tax purposes. You’ll need to fill out some extra paperwork, though, so be sure to check with the IRS or a professional tax preparer to find out exactly what you need to do.
2. You Paid More Than Half the Expenses for Keeping Up the Home During the Year
That means you must have paid more than half of all household bills, including rent or mortgage, groceries, utilities and insurance.
It’s OK if someone gave you money for something like child support during the year to help you cover the…
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