Head of Household vs. Single: Tax Filing Status Explained

Introduction

The first step in preparing for the tax season is selecting a filing status. Taxpayers who are not married have two filing options: filing as a Single taxpayer and filing as HoH. At first glance, both of these options appear to be the same, however in reality, they are not and the difference can impact the tax they owe or the tax refund they receive.

Being able to file for HoH status often provides larger tax deductions and more favorable tax brackets than filing as a Single taxpayer, however not everyone meets the criteria. Knowing the criteria can help you avoid errors, and save you money.

Your filing status has its advantages, as it determines:

• The amount of tax for which you are liable under the respective brackets.
• The tax credits and deductions you are free to claim.
• Standard tax deductions available to reduce your taxable income.

Benefits of selectable tax filing status are lost when a taxpayer is not compliant to the rules set by the IRS.

Definition of Filing Statuses

Single

You qualify for Single filing status if on the last day of the tax year, you are unmarried, divorced or legally separated. It is the lowest tier filing option and also the easiest and doesn’t have any dependents.

Head of Household

Head of Household classification is meant for unmarried taxpayers who still financially support a qualifying dependent. It acknowledges the basic cost of supporting an additional person, thus having more tax brackets, and a higher standard deduction.

Eligibility Requirements

Head of Household:

• To qualify for Head of Household you must:
• Unmarried or considered unmarried for the entire year.
• Pay more than half of the cost of maintaining the housing and basic expenses of the household, like rent or mortgage, utilities, food, and the like.
• Have a qualifying dependent, for example:
  
  • A child who lived with you for more than half the year.
  • A parent you supported even if they didn’t live with you.
  • Some other relative who satisfies the IRS definition of a dependent.

Single

• You will file as Single if:
• You are not married, divorced, or legally separated.
• You do not support a dependent.

If you are single, you do not qualify for any other status, like Head of Household or Married Filing Joint.

Tax Benefits Comparison

Standard Deduction

For 2025: Single: 

• Single: $14,600
• Head of Household: $21,900

That’s a $7,300 advantage for HoH filers, which is a deduction from taxable income.

Tax Brackets

A HoH filer is entitled to benefit from a larger “lower-rate brackets.” This implies a greater proportion of income is taxed at lower rates compared to Single filers.

Common Scenarios

Case 1: Single With No Dependents

Samantha, age 29, is unmarried, independent, and has no children, therefore, she has to file as Single.

Case 2: Has a Child

Marcus “dads” his 8-year-old daughter and pays all family expenses. Because he has primary custody and his daughter lives with him for more than half the year, he qualifies for Head-of-Household which means lower taxes.

Case 3: Responsible for a Parent

Dana supports her elderly mother financially. Although her mother lives in an elderly care home, her daughter can still claim Head of Household because she is still considered to be in his care and a dependent.

Mistakes to Avoid

• Misusing “Head of Household” paying rent with friends does not count. You must be financially responsible for a dependent.
• Most single parents overlook tax deductions worth thousands of dollars as a result of careless HoH status filing.
• While providing financial aid, it must always be kept in mind that there are certain specific IRS rules that qualify a person as a dependent.

How to Choose the Right Status

For a more detailed analysis of the situation, consider taking the following actions:

• IRS Interactive Tax Assistant provides a questionnaire that guides the user.
• Consult IRS Publication 501 concerning the rules for filing status.
• Leave it to a seasoned tax expert for checking possible compliance violations that can lead to loss of money owing to tax savings irresponsibility.

Conclusion

There is a significant financial difference between Single and Head of Household for tax purposes. If you’re unmarried and support a dependent, HoH may unlock larger deductions and more favorable brackets. If you don’t meet the requirements, Single remains the correct option. Strategically slotting the ideas to give emphasis to the need to avoid IRS violations as well as maximize tax advantage savings is essential.

Avoid common filing mistakes and maximize your Maryland return. Contact Watter CPA today for expert tax guidance and a detailed return checklist.

FAQs

1. What is the difference between a head of household and single?
2. Is it better to file single or head of household?
3. Can I claim head of household if I live alone?
4. Can I file as head of household if I'm not married?
5. What qualifies a person as head of household?