When filing taxes, selecting the correct filing status is crucial as it impacts tax calculations, standard deduction amounts, and eligibility for certain credits and deductions. This article analyzes the advantages and requirements of two specific filing statuses: Head of Household and Qualifying Widow(er), to help you determine which one is more beneficial for your situation.
Head of Household
- Definition: An unmarried individual who pays more than half the costs of keeping up a home for a qualifying person for more than half the year.
- Qualifying Person:
- A child, stepchild, foster child, or other qualifying relative who meets certain criteria.
- The individual must live with the taxpayer for more than half the year, except for temporary absences.
- Advantages:
- Higher standard deduction than Single or Married Filing Separately.
- Generally lower tax rates than Single or Married Filing Separately.
- Considerations:
- The taxpayer must be unmarried or considered unmarried (e.g., living apart from spouse for the last six months of the year).
- The taxpayer must provide more than half the cost of maintaining the home.
Qualifying Widow(er)
- Definition: A taxpayer whose spouse died in either of the two preceding years and who meets certain requirements.
- Requirements:
- File a joint return for the year the spouse died (regardless of whether they actually did).
- Not remarried before the end of the current tax year.
- Have a child, stepchild, or adopted child who qualifies as a dependent.
- Live with the child in the taxpayer’s home for the entire year, except for temporary absences.
- Pay more than half the cost of keeping up the home.
- Advantages:
- Same standard deduction and tax tables as Married Filing Jointly.
- More favorable than Head of Household filing status.
- Considerations:
- The taxpayer must meet all the eligibility requirements.
- The status is only available for two years following the year of the spouse’s death.
Comparison
| Feature | Head of Household | Qualifying Widow(er) |
|---|---|---|
| Standard Deduction | Higher than Single or Married Filing Separately | Same as Married Filing Jointly |
| Tax Rates | Generally lower than Single or Married Filing Separately | Same as Married Filing Jointly |
| Eligibility | Unmarried or considered unmarried, with qualifying person | Spouse died in last two years, with qualifying child |
| Duration | No time limit | Only available for two years after spouse’s death |
Which Filing Status Is Right for You?
The best filing status for you depends on your individual circumstances. Consider the following factors:
- Marital Status: Are you unmarried, considered unmarried, or a surviving spouse?
- Dependents: Do you have a qualifying child or other dependent living with you?
- Home Expenses: Do you pay more than half the cost of maintaining your home?
- Spouse’s Death: If your spouse died within the last two years, you may be eligible for Qualifying Widow(er) status.
Both Head of Household and Qualifying Widow(er) filing statuses offer certain advantages over Single or Married Filing Separately. By understanding the requirements and benefits of each status, you can make an informed decision that will minimize your tax liability and maximize your refund. If you are unsure which filing status is right for you, consult with a tax professional for guidance.
Which Tax Filing Status Should I Use?
FAQ
What is the most advantageous filing status for a widow?
Should a widow file as head of household?
What are the benefits of filing qualifying widower?
Which spouse should claim head of household?
Should I file as a head of household or a surviving spouse?
Am I better off filing as head of household or as a Qualifying Surviving Spouse? The tax rates for a Qualifying Surviving Spouse are the same as for couples filing a joint return and are lower than the tax rates for a Head of Household. So if you are eligible to use the Qualifying Surviving Spouse status, you should do so.
How long can a widower use a head of household status?
As mentioned earlier, you may be able to use the qualifying widower status for two years, starting the year after your spouse dies. After the two-year period, if you remain unmarried, then you can use the head of household status if you have qualifying dependents or the single filing status, whichever you qualify for.
Can a widow be a head of household?
Unless you qualify for something else, you’ll usually file as single in the year after your spouse dies. You might not qualify as a qualifying widow (er) if your child is a foster child. In that case, you’ll likely be able to use head of household status. Is a widow considered head of household for tax purposes?
Is a widow a good tax status?
Qualifying widow or widower status is typically better than filing as head of household or as single. The widow status means that more of your income will get taxed at lower rates, reducing your overall tax burden and keeping more of your income.