Legal Definitions - head of household

The term "head of household" refers to a specific filing status or legal designation primarily used in tax law and, in some jurisdictions, in property law. Generally, it identifies an individual who is unmarried and provides the main financial and residential support for at least one qualifying dependent living in their home for more than half the year. This status acknowledges the unique financial responsibilities of such individuals.

For federal income tax purposes, the head of household filing status offers a more favorable tax rate than filing as "single." To qualify, an individual must typically be unmarried or considered unmarried on the last day of the tax year, pay more than half the cost of keeping up a home for the year, and have a qualifying person live with them in that home for more than half the year (with some exceptions for temporary absences or certain relatives).

In some states, head of household may also be a criterion for claiming a homestead exemption. This legal protection can shield a portion of a primary residence from creditors in cases of bankruptcy or other debt enforcement, and sometimes offers property tax benefits, recognizing the importance of maintaining a stable home for dependents.

Here are some examples illustrating the application of "head of household":

• Example 1: A Single Parent Supporting Children
  Maria is a single mother who works full-time to support her two young children. She pays the mortgage, utilities, and all other household expenses for the home where they all live. Her children reside with her for the entire year.
  Explanation: Maria qualifies as a "head of household" for tax purposes because she is unmarried, provides more than half the cost of maintaining her home, and her dependent children live with her for the majority of the year. This status allows her to benefit from a lower tax rate compared to filing as a single individual, acknowledging her significant financial responsibility for her family.
• Example 2: An Individual Supporting a Dependent Relative
  David is a bachelor who has taken on the responsibility of raising his teenage nephew, Alex, after Alex's parents moved abroad for work. Alex lives with David in his apartment, and David covers all of Alex's living expenses, including food, clothing, and school supplies, for more than six months out of the year.
  Explanation: Even though David is not Alex's parent, he can likely file as "head of household." He is unmarried, provides the primary residence and financial support for his qualifying dependent (his nephew) for more than half the year, and pays more than half the cost of keeping up the home. This demonstrates that the "head of household" status isn't limited to parents but extends to other individuals supporting qualifying relatives.
• Example 3: Protecting a Home with a Homestead Exemption
  Sarah is a widowed grandmother who lives with and financially supports her adult daughter, who has a disability and cannot work, and her young granddaughter. Sarah owns her home outright. She is concerned about potential medical debts and wants to ensure her home is protected for her family.
  Explanation: In a state with homestead exemption laws, Sarah, as the "head of household" providing a home and support for her dependent daughter and granddaughter, could designate her property as a homestead. This legal action would protect a significant portion of her home's value from general creditors, such as those pursuing medical debts, providing financial security for her family's housing.