I have an unusual situation. My client is a divorced female (divorced in March 2008) who still lives in the same house with her exhusband. They have 4 children, 2 of which the divorce decree states, can be claimed by my client, 2 can be claimed by exhusband. The problem is, my client did not provide over 1/2 the support for any child in the household. I told her she would have to claim single, no dependents for 2008. Just want to see what you all can add to this discussion. Thanks.
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The child may not have provided over their of their own support. It's not necessary for her to have provided support to claim them. She would have to provided over half the cost of the household to claim HOH status.In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.
Alexis de Tocqueville -
If you look at tab 3-15 in ttb, it explains the dependency of children for divorced or legally separted parents. The child cannot have provided over half of his or her own support for dependency tests, but these rules don't apply to HOH filling status.Comment
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I agree that if she is not the main provider that she can not go HOH. But I don't understand why she can't claim any dependents. Did she have any income in 2008?Originally posted by happyreturns View PostComment
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Each files single...does the divorce decree say who the "custodial parent is". The custodial parent signs 8332's for the children being taken by the other spouse. If there is no "custodial statement" I would have the applicable parent sign 8332 for the child/ren the other parent is taking. Neither can file HH because there are two income producing people in the house.taxeaBelieve nothing you have not personally researched and verified.Comment
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If they resided together for the entire year they are both deemed custody by physical presence. Neither is noncustodial parent no form 8332 is really needed. Agree if she didn't provide more than half the cost of keeping up home she would be single.Comment
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[QUOTE=Gene V;70574]You need to read what Bees Knees has to say about this.
Gene....BK is a case where the taxpayer is living alone with the child. My point is that if there are two adults residing in the residence and both work and contribute to the household it doesn't matter if one or both has their own or each other's kids .... neither qualifies for HH.
And with the new directions on claiming children from the IRS, I would have the applicable parent provide the F8332 to eliminate any questions that may arise in the future. Whether or not it is required it certainly eliminates that an agreement was made as to who could take the child.
Not to mention those cases where the child/ren are "loaned" to someone else for tax purposes or when both claim the child/ren and didn't tell the other.
The IRS is doing what it can to prevent the same child from being claimed more than once. It saves me time and aggrevation later on when I have the document to prove that my client rightfully took the deduction.taxeaBelieve nothing you have not personally researched and verified.Comment
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>>Gene....BK is a case where the taxpayer is living alone with the child. My point is that if there are two adults residing in the residence and both work and contribute to the household it doesn't matter if one or both has their own or each other's kids .... neither qualifies for HH.<<
That's not true. If the ex living in the same household can document that he did indeed provide more than half the cost of keeping up the home and has qualifing children why can't he file HOH? If he files with form 8332 he would be saying he is the noncustodial parent which is not the case.Comment
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Divorce decree
The divorce decree gives each parent the right to claim 2 children. I wouldn't think any further documentation would be necessary.
No matter what her filing status is she should be able to claim 2 children on her tax return. I am sure the divorce decree tells them which child to claim.
LindaComment
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Do you have a citation?Originally posted by taxea View Post
If any income from another adult living in the same house disqualifies HOH, what is the purpose of the more than ½ the cost of the house rule?
Example: Mom pays 80% cost of home and has a qualifying child living with her. Her deadbeat boyfriend pays 20% cost of home and sits on the couch watching TV the rest of the time.
Did mom pay over ½ cost of home? Yes.
Does mom have a qualifying child living with her? Yes.
Does mom qualify for HOH? Yes.
The adult boyfriend’s income is irrelevant. Please provide me with a citation if you think I am wrong.Comment
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I totally agree with BK. There is no requirement that other members of the household not contribute to the support of the household.Comment
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"Example: Mom pays 80% cost of home and has a qualifying child living with her. Her deadbeat boyfriend pays 20% cost of home and sits on the couch watching TV the rest of the time."
BK - you know my sister??!!!
Also, my research sides with Bees. There is no cite that I can find disallowing HOH in the event that another income producing adult resides in the house.Comment
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I agree. Just because the expenses are shared does not mean that the adult did not pay over 1/2 the cost for the upkeep of their residence. Roommates do this all the time.Originally posted by BHoffman View PostYou have the right to remain silent. Anything you say will be misquoted, then used against you.Comment
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A distinction
When two unrelated adults live in a house with children, you have to determine if they are living as one family or two. In this case I would suspect they are living as one family and therefore there can only be one H of H. However if the two adults do not share child rearing responsiblities, do not eat dinner together as a family, do not share money, etc then each could be H of H if each provides more than 1/2 the ocst of their household respnosibilites.Comment
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