When it comes to income taxes, your marital status and whether you claim dependents plays a big role in determining how much is withheld from your paycheck for federal taxes. Generally speaking, there are three main filing statuses when it comes to federal income taxes: single, head of household, and married filing jointly. So which status typically results in more taxes being withheld from each paycheck?
Key Factors That Impact Withholding
There are a few key factors that impact how much tax is withheld from each paycheck:
- Filing status – whether you file as single, head of household, or married filing jointly
- Number of allowances claimed on Form W-4 – allowances account for deductions and credits that reduce tax liability
- Income level – higher incomes are taxed at higher rates
- Number of jobs – withholding on each job doesn’t account for other incomes
So when comparing single vs head of household, the filing status and number of allowances claimed are the main factors that will determine withholding amounts.
Withholding Allowances
Allowances on Form W-4 are used to adjust federal income tax withholding from paychecks. Each allowance claimed reduces the amount of tax withheld.
The more allowances claimed, the less tax is withheld. The number of allowances should approximate tax deductions, credits, and other reductions to tax liability.
Common reasons to claim allowances include:
- Personal exemption for taxpayer
- Personal exemption for spouse
- Exemptions for dependents
- Standard deduction based on filing status
- Certain tax credits (child tax credit, education credits, etc)
- Itemized deductions such as mortgage interest, charitable gifts, etc
So the number of allowances has a direct impact on tax withholding. All else being equal, more allowances = less withholding.
Head of Household vs Single Tax Withholding
When comparing head of household filing status to single status, there are a few key differences that impact tax withholding:
1. Higher Standard Deduction
One of the biggest differences is the standard deduction amount:
| Filing Status | 2023 Standard Deduction |
|---|---|
| Single | $13,850 |
| Head of Household | $20,800 |
As you can see, the head of household standard deduction is over $6,900 more than the deduction for single filers.
This higher deduction amount means head of household filers can claim additional withholding allowances to account for the larger standard deduction. All else being equal, this results in less tax being withheld from each paycheck.
2. Claiming Dependent Exemptions
Another big difference relates to exemptions for dependents.
When you file as head of household, you can claim an exemption for each of your qualifying dependents. This dependent exemption lowers taxable income.
For 2023, the dependent exemption amount is $4,650 per dependent. So a head of household filer with 2 dependents would reduce their taxable income by $9,300 vs a single filer with no dependents.
This means the head of household filer could claim additional withholding allowances based on the dependent exemptions. Again, leading to less tax withheld per pay period.
3. Tax Brackets and Rates
The final major difference is the width of the tax brackets and applicable rates.
For 2023, here is how the tax brackets compare based on filing status:
| Single | Head of Household | |
|---|---|---|
| 10% bracket | $0 to $11,000 | $0 to $16,450 |
| 12% bracket | $11,001 to $44,725 | $16,451 to $60,975 |
| 22% bracket | $44,726 to $95,375 | $60,976 to $107,375 |
| 24% bracket | $95,376 to $182,100 | $107,376 to $181,650 |
A few things stand out when comparing the brackets:
- The head of household 10% bracket is much wider than for single filers
- The 22% and 24% brackets kick in at higher income levels for head of household
- Overall head of household brackets are wider than single filer brackets
This means head of household filers enjoy lower tax rates on a larger portion of their taxable income. All else being equal, less tax would be owed and withheld from each paycheck.
Scenarios Comparing Single vs Head of Household Withholding
Let’s look at some examples to see how withholding and take home pay could differ between single and head of household filers.
We’ll use the following assumptions:
- Paid semi-monthly (24 pay periods per year)
- Claim standard deduction
- No other income or deductions beyond W-2 wages
Scenario 1) Income of $60,000
| Single | Head of Household | |
|---|---|---|
| Annual Income | $60,000 | $60,000 |
| Pay Period Income | $2,500 | $2,500 |
| Standard Deduction | $13,850 | $20,800 |
| Taxable Income | $46,150 | $39,200 |
| Federal Tax | $6,143 | $4,864 |
| Per Pay Period Tax | $256 | $202 |
| Take Home Pay | $2,244 | $2,298 |
For an annual income of $60,000:
- The head of household filer has lower taxable income due to higher standard deduction
- Lower taxable income results in $1,279 lower total tax liability
- $54 more take home pay each period for the head of household filer
Scenario 2) Income of $100,000
Let’s look at a higher income example of $100,000 annual salary:
| Single | Head of Household | |
|---|---|---|
| Annual Income | $100,000 | $100,000 |
| Pay Period Income | $4,167 | $4,167 |
| Standard Deduction | $13,850 | $20,800 |
| Taxable Income | $86,150 | $79,200 |
| Federal Tax | $21,478 | $19,693 |
| Per Pay Period Tax | $894 | $820 |
| Take Home Pay | $3,273 | $3,347 |
In this scenario:
- The head of household filer again has lower taxable income
- Total tax savings compared to single filer is $1,785
- Take home pay higher by $74 per pay period
Scenario 3) With Dependents
Now let’s look at an example where the head of household claims 3 dependents. We’ll assume an annual income of $75,000.
| Single | Head of Household | |
|---|---|---|
| Annual Income | $75,000 | $75,000 |
| Pay Period Income | $3,125 | $3,125 |
| Standard Deduction | $13,850 | $20,800 |
| Dependent Exemptions | $0 | $13,950 |
| Taxable Income | $61,150 | $40,250 |
| Federal Tax | $8,865 | $4,435 |
| Per Pay Period Tax | $369 | $185 |
| Take Home Pay | $2,756 | $2,940 |
Key differences:
- Head of household claims 3 dependents reducing taxable income
- Total tax savings of $4,430 compared to single filer
- $184 more take home pay per period
The dependent exemptions result in significant tax savings for the head of household filer.
Conclusion
In summary, head of household filing status generally results in less taxes being withheld from paychecks compared to single filing status. There are a few key reasons:
- Higher standard deduction lowers taxable income
- Can claim dependent exemptions to further reduce taxable income
- Wider tax brackets result in more income taxed at lower rates
In the examples, the head of household filers had higher take home pay in each scenario. The difference was most significant when claiming multiple dependents.
However, to qualify for head of household status, strict requirements must be met related to providing a home for dependents. Many single filers don’t meet these requirements.
When evaluating tax withholding, be sure to consider your specific situation including income, deductions, dependents, and any additional factors that may impact taxes. Adjust your Form W-4 withholdings accordingly to have an appropriate amount withheld.