Understanding the IRS tax filing options is critical to protect income from being unnecessarily taxed. Identify the IRS Head of Household filing status correctly, it will identify a “legit” balance owed, if any.
First of all let’s understand if you qualify to file as Head of Household (HOH) status.
IRS Head of Household if he/she meets all of the following requirements:
1) Is unmarried or considered unmarried on the last day of the year.
2) Paid more than half the cost of keeping up a home for the year.
3) A qualifying person lived with the IRS taxpayer in the home for more than half the year (except for temporary absences, such as school). However, a dependent parent does not have to live with the taxpayer if the parent is in a rest home or home for the elderly.
Married but, Head of Household eligible
Under various circumstances a married individual is considered unmarried for State and IRS tax purposes. A taxpayer is considered unmarried if the taxpayer meets all of the following head of household tests.
1) Files a State or IRS separate return.
2) Paid more than half the cost of keeping up a home for the year.
3) Did not live with a spouse for the last six months of the year.
4) The State or IRS taxpayer’s home was the main home, for more than half the year, for the taxpayer’s child whom can be claimed as a dependent by the taxpayer or the noncustodial parent.
If a spouse dies during the year, the surviving spouse is considered married for the whole year and can choose to file State and IRS married filing jointly.
The standard deduction amount for head of household in 2013 is $8950.00 vs. $6100.00 for single and married filing separately. The difference of $2850.00 in savings against your taxable income. Each additional child has a variable standard deduction amount, $1000.00 for 2013 or dependents earned income plus $300.00 not to exceed the standard deduction.
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