College of Law :: Georgia State University

Head of Household Filing Status

The head of household filing status offers an alternative for those who qualify from filing as single.  A person who is married may not file as head of household.  See § 7703 for determination of marital status that allows certain individuals who are married to treated as single.  The tax rate for the head of household filing status is usually lower than the single and married filing separately tax rates.  A taxpayer who qualifies for the head of household filing status will also receive a higher standard deduction than if they had filed as single or married filing separately. 

Many of the taxpayers who come to the Clinic have had their head of household status disallowed.  In many instances, these taxpayers were audited because of their Earned Income Tax Credit (EITC) claims.  Once their EITC claims were disallowed, their Head of Household filing status and dependency exemptions are usually also disallowed.

Rules and Requirements

Caution:
Please make sure to check IRS Publication 17 applicable to the year in question because some of the requirements have changed.  The rules below are for tax year 2006.

Section 2 of the Internal Revenue Code defines head of household and sets forth the requirements for filing under head of household status. IRS Publication 17 provides guidance for applying the law by illustrating the following rules:

1.       The taxpayer must be unmarried or considered unmarried on the last day of the tax year.
           a.       Considered Unmarried [IRC § 7703]
           b.       Taxpayer is considered unmarried on the last day of the year if they are legally separated
                     from their spouse, according to the law if the state taxpayer resides in, under a divorce or
                     separate maintenance decree, or
           c.       Taxpayer meets all of the following tests:
                    (1)    Taxpayer filed a separate return.
                    (2)    Taxpayer paid more than half the cost of keeping up taxpayer's home for the tax year.
                    (3)    Taxpayer's spouse did not live in taxpayer's home during the last 6 months of the tax
                            year.  Spouse is considered to live with taxpayer even if he is temporarily absent due 
                            special circumstances.
                    (4)    Taxpayer's home was the main home of her child, stepchild, or eligible foster child for more
                            than half the year.
                    (5)    Taxpayer must be able to claim an exemption for the child.  Taxpayer may still meet this
                            test if she cannot claim the exemption because the noncustodial parent is allowed to
                            claim the exemption for the child

NOTE: Taxpayer is considered unmarried for Head of Household purposes if her spouse was a nonresident alien at any time during the year, and taxpayer chooses not to treat her nonresident spouse as a resident alien.  However, the spouse is not a qualifying person for Head of Household purposes.

NOTE: Even if taxpayer is considered unmarried for Head of Household purposes because she was married to a nonresident alien, taxpayer is still considered married for purposes of EIC.  Taxpayer cannot claim EIC unless she files a joint return with her spouse.

2.       The taxpayer must have paid more than half the cost of keeping up a home for the tax year.

3.       A qualifying person lived with the taxpayer for more than half the year (except for temporary absences, such as school).  A qualifying person for the purposes of the Head of Household filing status must bear one of the relationships specifically listed under § 2(b)(1)(A)(i) or must meet the requirements to qualify as a dependent.
       a.       Relationships specifically listed under § 2(b)(1)(A)(i)
                 (1)  A son, stepson, daughter, or stepdaughter of the taxpayer, or
                 (2) Descendant of a son or daughter of the taxpayer, but if such son, stepson, daughter,
                       stepdaughter, or descendant is married at the close of the taxpayer's taxable year, only if
                       the taxpayer is entitled to claim the individual as a dependent.

Documents to Support Head of Household Status

1. Copy of lease showing taxpayer as primary tenant*
   
   
2. Copy of mortgage if taxpayer owns home *
   
   
3. Paid utility bills for the taxpayer home with canceled checks
   
   
4. School records listing the qualifying person’s address
   
   
5. Medical records listing the qualifying person’s address
   
   
6. Usually, the documents used to support dependency exemptions can also support Earned Income Credit and Head of Household.
   

*If the taxpayer has a PO Box as the address, a copy of Postal form 1093 can be requested from the Post Office to obtain geographical address.

Resources

Internal Revenue Code

Treasury Regulations

IRS Forms and Publications