Head of Household/Qualifying Widower

Who is a "qualifying person" for Head of Household status?

For HH status a "qualifying person" is a single QC; a married QC for whom you can claim an exemption; a QR who is your mother or father and for whom you an claim an exemption; or QR other than your mother or father who lived with you more than 1/2 the year, is related to you (but not a cousin), and for whom you can claim an exemption. Pub 17, pg. 25

Must a Head of Household have a QC?

No, QCs and related QRs (i.e. other than "those who satisfy the QR relationship requirement solely because they lived with T the entire year").

Tony (28) and Adam (27) are cousins and lived in the same home throughout 2009. Adam earned $2,500 in 2009, Tony earned $25,000 and provided more than 1/2 of Adam's support. Does Tony qualify for HH?

No, even though Adam is a QR of Tony, he is not a "qualifying person" for HH purposes because he is not related to Tony in any of the ways listed under "relatives who do not have to live with you [all year]" relating to QRs (i.e. because he is a cousin).

Can T qualify for HH if he maintained a household for the entire year for a non-related dependent (i.e. as a QR)?

No, to qualify T for HH, the dependent must actually be related.

What costs are included in determining the cost of maintaining a household?

rent, mortgage interest, real estate taxes, insurance on the home, property taxes, repairs, maintenance, including upkeep (home and yard), utilities, communication and entertainment, internet, cable phone, food eaten in the home, fair rental value of a home owned by a dependent

What are the exceptions to the Head of Household Requirements?

1. Married Qualifying Child. 2. Non-Relative Dependent. 3. Multiple Support Agreements. 4. Non-Resident Alien. 5. Married, But Un-Married for Tax Purposes

Qualifying Widow(er) Requirements

1. T's spouse died in either of the two tax years immediately preceding the current tax year, and 2. T paid over half the cost of maintaining the household which is the home of their dependent son, stepson, daughter, or stepdaughter for the entire year. 3. In the actual year the spouse died, T must have been eligible to file MFJ.

What are the disadvantages of the MFS status vs HoH?

1. The standard deduction is $0 if the other spouse itemizes. 2. The effective tax rates are higher. 3. Many deductions and credits are phased out at lower income levels or disallowed completely.

What are the three requirements for filing as Head of Household?

1.unmarried or "considered unmarried" on the last day of the tax year. 2.paid more than half of the cost of maintaining the household for the year. 3.maintained a household for either: a. A QC or QR (related only) who lived with T for more than half the year and for whom T can claim an exemption, or b. His mother or father for the entire year and who T may claim as an exemption.

Non-Relative Dependent Exception

A dependent who meets the QR relationship test because he lives in the same household with T for the entire year cannot qualify T for HH status. To qualify T for HH, the dependent must actually be related to T.

Multiple Support Agreements Exception

A taxpayer who has a dependent because of a multiple support agreement (MSA) cannot file as HH. If T has a QR dependent, he must have provided over half of the support for that dependent by himself (and therefore would not have needed a MSA).

FDHHSUP

Federal Head of Household Support Worksheet

Married Qualifying Child Exception

The QC of a taxpayer for HH purposes cannot be married unless T can claim an exemption for that child.

What is "Head of Household"?

The filing status used by an unmarried (or "considered unmarried") T who paid more than half of the cost of keeping up a home where a "qualifying person" (QP) lived with T for more than 1/2 the year. If the QP is T's dependent parent (QR), he or she does not have to live with T.

Married, But "Unmarried For Tax Purposes" Exception

To be considered "unmarried for tax purposes", T must be legally separated or meet all of the following: 1.file a separate return. 2.have provided more than half the cost of maintaining the home. 3.The home must have been the principal place of abode of T and their dependent child for more than half the tax year. 4.T's spouse must not have lived in the home at any time during the last 6 months of the tax year

Herbert (34) is unmarried and pays 100% of the cost of maintaining a household for Clarice (5). Clarice is Herbert's QC. May he file HH?

Yes

Juanita (42) is unmarried and pays 65% of the cost of maintaining a home for her father, Bernabe (77). Juanita will claim Bernabe on her tax return in 2009. May Juanita file HH?

Yes

What costs are not included in determining the cost of maintaining a household?

clothing, education, medical treatment, vacations, life insurance, transportation, rental value of a home owned by the taxpayer, services provided by the taxpayer or others