Question

Review each of the following scenarios. The first individual mentioned is the primary taxpayer. Assume this person is a U.S. citizen and not a dependent of anyone else. Then, given the information provided, select the response that describes a taxpayer who may file as head of household.

Clint lived with his ex-wife, Mary, and his 17-year-old stepson, Brad, for the first five months of the year. During that time, Clint paid more than 50% of the costs of supporting the household. In May 2017, the couple divorced, and Mary and Brad moved out.

Janelle has been raising April, age 6. April's mother, Denise, used to live with Janelle and April, but Denise moved out in 2015 and has not been heard from since. The whereabouts of April's father are also unknown. Janelle and April are not related, and Janelle does not have formal custody, but she cares for April as if she were her own. No one else lives in their household, and Janelle provides all of April's support.

Tracy is a 21-year-old single taxpayer. Two years ago, her 19-year-old sister, Stacy, moved in with her because Stacy was not getting along with her parents. Stacy earned $12,000 in 2017 and was a full-time student. Tracy provided more than half of Stacy's support.

James, age 36, lives with his 62-year-old father, Martin. Martin has health issues and did not earn any income in 2017. James and Martin lived together all year, and James provided all of Martin's support. Martin's 60-year-old wife, Loretta, lived apart from them. Loretta earned $20,000 during the year and has a tax liability. Martin and Loretta are filing a joint return.

Answer 1

Part 1

Conditions for being considered as Head of Household (HOH):

1. You were not married (you were single, divorced, or legally separated), or were "considered unmarried" on the last day of the tax year.
2. You paid more than half the cost of "keeping up a home" for the year.
3. A "Qualifying Person" lived with you in that home for more than half the year, except for temporary absences (a dependent parent is not required to live with you). (Source: https://www.efile.com/irs-head-of-household-tax-filing-status/

Since Mary and Brad moved out in May only and condition 3 is not fulfiled. Clint can not file as HOH. However, Mary can choose to file as HOH since she satisfies all the three conditions.

Part 2

To get qualified for filling return as HOH, person should have any of the following as a Qualifying Person:

• A Qualifying Child who is single.
• A Qualifying Child who is married, as long as you can claim a tax exemption for them. (They can still be your Qualifying Person if the only reason you cannot claim the exemption for them is that you can be claimed as a dependent on someone else's return).
• Your mother or father, if you can claim an exemption for them.
• A Qualifying Relative that is related to you, if they lived with you for more than half the year and you can claim an exemption for them. Any of the following relations may count as a Qualifying Person: your child, stepchild, grandchild or other descendant of one of your children (or stepchildren or foster children), son-in-law, daughter-in-law, brother, sister, half brother, half sister, stepbrother, stepsister, brother-in-law, sister-in-law, parent, stepfather, stepmother, father-in-law, mother-in-law, grandparent, great-grandparent, and, if related by blood, aunt, uncle, niece, or nephew.

Since April is not relative, Janelle cannot claim April as Qualifying person for the purpose of HOH.

Part 3

A Qualifying Person is someone who qualifies you to file as Head of Household if they lived with you in your home for more than half the year, not counting temporary absences. Sister is included in the lit of qualifying person by IRS. Since Stacy is also dependent upon Tracy though she earns, Tracy would be considered as HOH

Part 4

Jame may file return as HOH since he paid more than half of the support for Martin( actually full support) and they lived together(though this condition is not necessary to be fulfliled in case of parents). Loretta cannot claim as HOH because for HOH, person has to considered as unmarried.