Head Of Household

DEFINITION of 'Head Of Household'

A status held by the person in a household who is running the household and looking after a qualified dependent. In order to qualify as head of household, the designated household must be located at the person's home and the person must pay more than 50% of the costs involved in running the household. The benefit of having the head-of-household status is that it can result in lower tax rates in certain jurisdictions.

BREAKING DOWN 'Head Of Household'

Typically, the head of a household must also be unmarried. However, in certain situations, a married person can be the head of household. In addition to the requirements listed above, the married person must also file an individual tax return and the spouse of the married person must not have lived with the person for the last six months of the calender year.

RELATED TERMS
  1. Household Income

    The combined gross income of all the members of a household who ...
  2. Member Of Household Test

    A test that can be administered to a prospective dependent in ...
  3. Breadwinner

    The primary, or sole, income earner in a household. Breadwinners, ...
  4. Account Aggregation

    A process by which accounts are linked for the purpose of combining ...
  5. IRS Publication 926

    A document published by the Internal Revenue Service (IRS) that ...
  6. Member Of Household

    A person who is claimed as a dependent when filing year-end tax ...
Related Articles
  1. Personal Finance

    What Does Filing As Head Of Household Mean For Your Taxes?

    In order to file as head of household, you must meet several requirements. Find out whether being head of household comes with any tax benefits.
  2. Personal Finance

    Do You Qualify as Head of Household?

    When you hear the term “head of household,” what comes to mind? The breadwinner? The main source of household income? Unfortunately, it’s not that simple.
  3. Personal Finance

    Household Debt Surpasses $90,000

    Study finds that the average debt in U.S. households is over $90,000.
  4. Managing Wealth

    Household Net Worth For Americans Rose In 2015

    Even as household net worth for American households rose in 2015, it failed to translate into economic growth.
  5. Markets

    Americans' Total Net Wealth Rises to Record Level

    According to the first quarter 2016 figures put out by the Federal Reserve, the aggregate net worth of U.S. households and nonprofits rose to $88.1 trillion.
  6. Financial Advisor

    The 10 Best Cities for Financial Advisors

    If you're an advisor looking for a promising location to practice, consider the combination of high wealth and low market penetration of these locales.
  7. Markets

    10 Wealthiest States in the United States

    A review of the 10 richest states in America as ranked by median household income.
  8. Personal Finance

    Income Tax Brackets for 2015-2016

    Learn about the 2015-2016 tax brackets, how to calculate your marginal tax rate, the five types of filing status and how to qualify for them.
  9. Personal Finance

    Family Finances: Compare Your Family to This Study

    Despite improvements in the economy, a new report from Pew Charitable Trusts finds that household budgets are increasingly stretched thin.
  10. Personal Finance

    5 Signs It's Time to Hire an Estate Manager

    If managing multiple properties (or just one large estate) is taking up too much of your time, you can hire your way back to sanity.
RELATED FAQS
  1. When do I need to fill out an IRS Schedule H form?

    Learn what factors would require you to file a Schedule H Form with the IRS. Read Answer >>
  2. Can I file single if I am legally married but have not lived with spouse for two ...

  3. I get multiple mailings to my house from companies that my spouse, children and I ...

    It's not uncommon for there to be more than one investment account holder in one household. If multiple members of your household ... Read Answer >>
  4. I don't have taxable income at age 73, do I still file taxes for 2015?

  5. Am I eligible to file a federal tax return receiving social security disability & ...

  6. Which US cities have the highest number of high-income households?

    Learn which U.S. cities have the highest number of high-income households and why they were able to attract such a large ... Read Answer >>
Trading Center