In: Accounting
There is a woman, she is married, but her husband abandoned her.
It has been a year but never divorced. They have two children. She
has a job, she lives with her parents during work, her parents
There is a big house, her parents didn’t charge her any rent, and
most of her money is spent on food and children.
Question 1: will she qualify for a household
Question 2: preparing her tax return what should you say to her?
whats her status?
Question 1: will she qualify for a household?
solution:There are three conditions that are to be fulfilled for being qualify as household that are below:
1.Paying more than 50% of the household expense during the tax year.
2.Unmarried for the tax year(some conditions).
3.Must have a qualifying child or dependent,
In the given case it is assumed that she is paying more than the 50% of the household expense during the tax year.
She is married but in the tax year she is not with her husband and the reason for not staying with her husband is other than such as military service, business trips, a stay in a medical treatment facility, or attendance at college.
It is also assumed that her children are dependent on her.
so she is qualified as household .
Question 2: preparing her tax return what should you say to her? whats her status?
Solution: Her status would be household which can lead to a lower taxable income and greater potential refund than the single filing status.