Filing Requirements

Head of Household is one of the most valuable filing statuses available to an unmarried parent, offering lower tax rates and a higher standard deduction than Single filing. To qualify, you must be unmarried at year end, pay more than half the cost of keeping up your home, and have a qualifying child live with you more than half the year. All three requirements must be met - and the rules around custodial versus noncustodial parents trip up a lot of people every filing season. Getting this wrong is a common audit trigger, so it pays to understand exactly how the rules work before you file.

Whether a spousal LLC must file a partnership return (Form 1065) depends on your state and how you choose to treat the business for federal tax purposes. The IRS offers a special election called a Qualified Joint Venture that lets eligible married couples bypass the partnership return requirement entirely. Community property state residents have an additional option that simplifies reporting even further. Understanding your choices can save time and reduce filing costs.