Video:How to Determine Head of Household Filing Statuswith D. Craig Godfrey
Head of household filing status is an important distinction when filing tax returns and it is important to declare this if applicable. Learn how to determine if you are eligible for head of household filing status.See Transcript
Transcript:How to Determine Head of Household Filing StatusHey guys, Greyson Ferguson here with About.com. Today we are going to look at how to determine if you have a head of household filing status.
Qualifications for Head of Household StatusHead of household status is available for a tax payer -- that person that is filing the tax return may not be married, they are providing more than half the cost of keeping up the cost of a principle residence, the home was a principle residence for a more than half of the year, and for a qualifying child or qualifying relative for more than half the year who is a dependent, and also this person needs to be a U.S. resident or U.S. citizen to be able to qualify for head of household status.
Two Categories for Dependency for Head of Household StatusThe IRS has stated now that there are two categories for dependency. One is a qualifying child and the other is a qualifying relative. The reason you want to qualify for that instead of a single status is that the income tax rate is better -- they are lower, so you pay less income taxes.
Well there you have it. I’d like to thank the folks at Godfrey Wise Berg, and to learn more yourself, visit us on the Web at About.com.