Mistake 6: The “Head of Household” Filing Error
Filing status mistakes are common because the names are confusing. “Single” seems obvious if you aren’t married, but if you have a child or dependent, you might qualify for “Head of Household” (HOH). HOH status offers a significantly higher standard deduction ($23,625) and more favorable tax brackets than filing Single.
To qualify for Head of Household, you generally must:
- Be unmarried or “considered unmarried” on the last day of the year.
- Pay more than half the cost of keeping up a home for the year.
- Have a “qualifying person” (usually a child or parent) live with you for more than half the year.
The Mistake: Single parents often file as “Single” out of habit, missing out on thousands of dollars in deductions. Conversely, parents sharing custody sometimes both try to claim HOH for the same child, which triggers an automatic IRS audit.
