Question

Peter unmarried daughter, Celia lived with him in his home for the entire year. Peter is divorced. He owns his own home and pays all of the costs of upkeep for the home. Peter paid over one half of the cost of support for Celia. peter may file as head of household if Celia is...

A 19 years old and earned $3800 in wages

B 22years old a full time student for five minutes and earned $500 in wages

C 21years old and earned $3725 in wages

D 20 years old and earned $4000 in wages

Answer 1

Correct Answer (B) 22 years old a full time student for five minutes and earned $500 in wages.

Reason and Explanation

IRS has provided the explanations regarding the Person who is eligible to file his return as Head of House hold.

The requirements are as follows

1. He must have paid more than half of the household expenses.
2. He is considered unmarried for the next tax year
3. He has a qualifying child or a depending and pays for more than half of the expense of that child or dependant.

Celia will be qualifying child if she is full time student of less than 24 years of age, pays less than half of his expenses, younger than his father peter and lived with his father for more than 6n months in the year.

Since Celia is 22 years old and full time students, obviously younger than his father, and pays less than half of his expense she is considered a Qualifying for child stated in Option B only.

Conclusion

Peter is unmarried and pays for her child’s more than half of expense and he paid for more than half of household expense as well, he can file Return as head of Household.