A taxpayer's eligibility for the head of the household filing status is determined by meeting three primary requirements. Even if two people share an address, it doesn't always mean they're considered a household.

Not all rules are set in stone; some are flexible. You can't be married or "thought to be single." A qualified dependant must live in your house, and you must contribute to more than half of the annual cost of maintaining your property.

Why Should I File as Head of Household?

Filing taxes as the head of the home has several benefits. Taxpayers in certain situations can use a standard deduction significantly higher than what is available to individuals: In 2021, you made $18,800; thus, on your 2022 tax return, you'll owe the government $18,800.

As a point of reference, a single filer must pay $12,550. The standard deduction is adjusted for inflation, increasing to $12,950 for a single filer and $19,400 for a head of household in 2022.

Qualifications: Unmarried

You must be single or "considered single" as of the last day of the tax year to be eligible for HOH status. You're eligible if you're not married and haven't gotten a divorce. A second requirement is that you and your spouse did not share a residence during the final six months of the tax year. This is the criteria for determining if a couple is married or not.

Absences due to temporary circumstances are disregarded, such as when a student is away at school or when a person is serving time in prison. For your separation from your husband to be permanent, you must be committed to never living under the same roof again.

Having a Relying Party Is Necessary

It will help if you claim a relative as a dependency as well. One of your children or other relatives may qualify as your dependant. The IRS allows an exemption for parents and other close relatives if you pay more than half the expense of maintaining their house during the year, but they still need to reside in your home for more than half the year. 6

You may qualify for an IRS tax break if your parents are divorced or separated. If your child resides with you for over half the year as the custodial parent, you can still claim to be the head of the household. While the other parent can still claim the kid as a dependant for income tax reasons, you can no longer do so.

More than 50% of Total Home Costs Are Due Upfront

It would help if you also covered more than half of the annual expenditures associated with maintaining your home. Household expenses such as mortgage interest or rent, utilities, property taxes, property insurance, food, and other necessities are all tax deductible. Nothing about medicine, clothes, or diversion is included.

Where Two Taxpayers Use the Same Address

If two or more taxpayers share the same residence, the question arises whether the address comprises one household or if each family residing there is a different household unit. The tax problem stems from the word "household." Possible meanings include a solitary dwelling or something less concrete.

It might also mean that two households operate out of the exact physical location. The IRS has made it clear that one's residence has nothing to do with their eligibility for HOH status. Contrarily, it is determined by the sum of all the circumstances.

Comparing Two Families

Suppose Sam and Sally share an apartment. They're roommates in a rented home. The two are co-parents to two children who live at home with them. They're both single. Each pays a third of the rent, utilities, and groceries. Neither of them is the primary breadwinner in their family.

Regarding home expenses, each partner is responsible for half (but not more than half). However, if they and their children live entirely different lifestyles within the home, they may be eligible under IRS guidelines. Neither of them eats together. They each subscribe to a different cable or streaming network. Even if Sally is at home, Sam will still hire a babysitter if he plans on going out for the evening.

They are only two families living in the same house. Since they operate as two different legal organizations, either one of them may be considered the primary breadwinner.

Proving the Existence of Two Families

The Internal Revenue Service requires joint filers to show that all shared household members maintain distinct houses and identities outside the home. The advantages of having two households share a single dwelling may stem from the following:

• Individual phone lines are set up for each household.
• Taxpayers have separate bank accounts and money.
• No one in either family helps out monetarily.
• Each of the adult filers has a private bedroom.
• Each child has a bedroom.
• No family birthdays or holidays.