Question

Consuela, age 39 and single, furnishes more than 50% of the support of her parents, who do not live with her; their only source of income are Social Security benefits of $18,000.

Does Consuela qualify for head-of-household filing status? You must support your conclusion by discussing each of the requirements for that filing status and whether they are satisfied in Consuela’s case.

This is the entire question. There is no case study.

Answer 1

Consuela does qualify for head-of-household filing status.

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In order to qualify for head-of-household filing status, the following tests must be met:

• Unmarried test

The taxpayer should be single or divorced or legally separated on the last day of the tax year.

Note: A taxpayer still is considered as unmarried if the taxpayer is legally married but lived in a separate residence from the spouse for at least the last 6 months of the tax year.

• Support test

The taxpayer must have paid (or) provided more than 50% of total household expenses.

• Qualifying dependent or child test

The qualifying person must live in the taxpayer's residence for at least 6 months of the tax year.

One of the exceptions to this rule is that the parents can still be considered as qualifying persons even though they do not reside in the taxpayer's residence.provided that the taxpayer should claim them as dependents.

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Coming to the question:

Consuela has qualified all the tests.

1. Unmarried test - Consuela is single on the last day of the tax year.

2. Support test - Consuela had provided more than 50% of total household expenses.

3. Qualifying dependent or child test - Even though Consuela and her parents did not live in the same residence for at least 6 months during the tax year, her parents can still be claimed as qualifying dependents.

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So,

Consuela is qualified for head-of-household filing status.