Tax Planning with PTS: Strategies for Individual Taxpayers

1. You must be legally married but have lived apart from your spouse for at least the last six months of the tax year.

2. You must have paid more than half of the expenses for maintaining your home.

3. You must have a qualifying dependent (such as a child, parent, or relative) who lived with you for more than half the year.

4. You cannot file a joint tax return with your spouse.

Eligibility Criteria for Filing as Head of Household While Married:

1. Marital Status: You need to be legally married but have lived apart from your spouse for at least six months during the year.

2. Filing Status: You must file separately from your spouse and cannot file a joint return.

3. Support Requirement: You need to have paid over half of the cost of maintaining your home.

4. Qualifying Dependent: You must have a dependent (like a child, parent, or relative) who lived with you for more than half the year.

5. IRS Guidelines: The IRS must consider you “unmarried” for tax purposes, meaning you have been separated from your spouse for at least six months.

Can you file Head of Household if you are legally married?

Yes, you can file as Head of Household if you are legally married, but there are specific conditions that must be met. To qualify for this filing status, you must have lived apart from your spouse for at least the last six months of the tax year. Additionally, you must have paid more than half of the costs of maintaining your home during the year and have a qualifying dependent, such as a child or relative, who lived with you for more than half the year. It’s also important to note that you cannot file a joint tax return with your spouse if you want to file as Head of Household. The IRS allows you to be considered "unmarried" for tax purposes under these circumstances, enabling you to take advantage of the Head of Household filing status, which typically offers a higher standard deduction and better tax rates compared to filing as Married Filing Separately.

A qualifying dependent for filing as Head of Household is someone you support and care for, and who meets certain IRS requirements. Here’s a simplified explanation:

1. Who Can Be a Dependent?

a. Children: A child, stepchild, or adopted child who lives with you for more than half the year and is under 19 (or under 24 if a full-time student).

b. Parents: If you support your parents financially but they do not live with you, they can still be your dependent.

c. Other Relatives: A relative like a sibling, grandparent, or even a cousin, who lives with you and depends on you for financial support for more than half the year.

2. Support Requirement:

a. You must provide more than half of the financial support for that person during the year (including food, housing, education, medical expenses, etc.).

3. Living Arrangement:

a. For a child or relative (other than a parent), they must live with you for more than half of the year. For a parent, they don't need to live with you, but you still must support them.

4. U.S. Citizenship:

a. The person must be a U.S. citizen, U.S. national, or resident alien. By meeting these criteria, you can qualify for Head of Household status, which usually gives you a larger tax deduction and more favorable tax treatment than filing separately from your spouse.

Frequently Asked Questions

Can you file Head of Household if you are legally married?

Yes, if you meet the criteria for being considered unmarried by the IRS, such as living apart from your spouse for the last six months of the tax year.

What is a qualifying dependent for Head of Household?

A qualifying dependent can be a child, parent, or other eligible relative for whom you provided at least half of their financial support during the year.

Do you get a higher deduction for filing as Head of Household?

Yes, the standard deduction for Head of Household filers is higher than for those filing as “Married Filing Separately.”

Conditions to File as Head of Household While Married: