Can you file head of household if married and spouse doesn t work

Generally no. Married taxpayers are required to file a joint tax return in order to qualify for premium tax credits. People who use the “married filing separately” status are not eligible to receive premium tax credits (and also cannot claim certain other tax breaks, such as the child and dependent care tax credit, tuition deductions, or the earned income tax credit.) There is a special exception, however, for individuals who must file separately because of domestic abuse or spousal abandonment.

For other married individuals who do not file a joint return, there may be other options.

If you have a dependent and meet certain conditions, you may be able to use the “head of household” filing status. People who file a tax return using this filing status can qualify for premium tax credits.

In addition, if you expect to be divorced by the end of the tax year, you will be able to file as a single taxpayer for that year and could qualify for subsidies under that filing status when you file your taxes. However, you may not be able to receive all of the premium tax credit that you’re entitled to in advance if you are not yet divorced with you make your Marketplace application. Except in cases of domestic abuse or spousal abandonment you should not say on your application that you are unmarried when you are still married.

Check with your tax adviser or a health insurance Marketplace Navigator for more information.

Your filing status is the backbone of your tax return, and checking the wrong box can be costly. Yet many filers still confuse single and head of household, financial experts say.

"Most people are not fully aware of the differences," said Rose Swanger, a certified financial planner and enrolled agent at Advise Finance in Knoxville, Tennessee.

You can choose the single filing status if you're not married. But if you're financially supporting a dependent, you may qualify for head of household with significant tax benefits.

Benefits of head of household

For divorced parents, it's always better to file as head of household, said Linda Farinola, a CFP and partner at Princeton Financial Group in Plainsboro, New Jersey.

One reason is there are wider tax brackets, meaning it takes more income to reach each rate. For example, single filers may reach the top of the 12% bracket with $40,525, whereas heads of household may have up to $54,200.

And with a larger standard deduction — $18,800 compared with $12,550 for single filers in 2021— your taxable income may be lower.

You may also qualify for other write-offs sooner, such as the third stimulus payment, the enhanced child tax credit or boosted earned income tax credit for 2021.

"There are a slew of tax benefits that become a bargaining chip in divorce negotiations," Swanger said.

Qualifying for head of household

While there are clear benefits for heads of household, there are strict eligibility requirements. "This is one area where the IRS is scrupulous," said Swanger.

To qualify for head of household, you must be unmarried or living separately from your spouse for at least the last six months of the year. A temporary absence like school or work doesn't count.

You must pay for more than half of the cost of maintaining a home, such as rent, mortgage interest, property taxes, utilities, repairs and meals at home.

And you must have a "qualifying person," such as a child, grandchild or other relatives, living with you for more than half of the year. A dependent parent doesn't have to reside in your home if you cover more than half of their cost of living.

Both parents may qualify for head of household with two or more children, as long as one child lives with each parent for more than half of the year, providing more than half the financial support, said Sallie Mullins Thompson, a CFP and CPA at a Washington, D.C.-based firm with her name that serves clients mainly in New York.

However, if there's only one child, parents may alternate claiming the head of household filing status each year.

"If you plan ahead, both parents can save money and avoid mistakes," Swanger added.

You can’t claim spouses as dependents whether he or she maintains residency with you or not. However, you can claim an exemption for your spouse in certain circumstances:

If you and your spouse are married filing jointly, you can claim one exemption for your spouse and one exemption for yourself.
If you’re married filing separately, you can claim an exemption for your spouse only if your spouse:
- Had no gross income
- Isn’t filing a return
- Wasn’t the dependent of another taxpayer, even if the other taxpayer doesn’t actually claim your spouse as a dependent