Is it beneficial for the person making less money in the household to file as head of household or the individual who makes more? Or is there no difference?

[dillon813]

I understand whoever pays more for household expenses should file as head of household, but that is not my question. Does the tax return decrease as the income increases on who files as head of household?

[Bsch4477]

Depends on whether the taxpayers have different tax brackets. 

[dillon813]

Let’s say one individual makes just over $50k and the other just over $40k 🙂

[ThomasM125]

Normally at those income levels, the earned income credit would be less if the one who makes more income claimed head of household. Also, if two individuals live together but are not married and they can both claim the dependents on their tax return, the one who makes more money is the one who should claim the dependents by tax law.