H of H .... Keeping up a Home

[LCP]

Among other things, to qualify as Head of Household you must pay over half the cost of "keeping up a home".

What that really means is keeping up THE home, correct?

Even if taxpayer earns enough to keep up a basic home........ or even if taxpayer pays parents enough to keep up a basic home, if the half cost of THE home that they live in is more than the taxpayer does or could contibute then the taxpayer may not claim H of H. Correct?

[OtisMozzetti]

Head of Household

The taxpayer must pay more than half the cost of keeping up the home not only for at least one qualifying person (dependent relative) but must pay more than half the upkeep costs for the entire household.

[Black Bart]

Hh

Among other things, to qualify as Head of Household you must pay over half the cost of "keeping up a home".

What that really means is keeping up THE home, correct?

Even if taxpayer earns enough to keep up a basic home........ or even if taxpayer pays parents enough to keep up a basic home, if the half cost of THE home that they live in is more than the taxpayer does or could contibute then the taxpayer may not claim H of H. Correct?

By "THE" I guess you're asking if it's that particular home that counts or if there's some sort of basic cost of an average house. I've never heard of a "standard" upkeep and think the cost would have to be the house parent is living in. But no, TP could not claim them if his part is less than the parent contributes.

Anyway, the parent still has to be a dependent and under the "qualifying relative" rules TP must also have paid over half of parent's support. That's unlikely since parent's paying more than half on just the house -- never mind everything else. Sounds like parent needs to have TP move in with him and parent could file as head of household.

[Jesse]

The taxpayer must pay more than half the cost of keeping up the home not only for at least one qualifying person (dependent relative) but must pay more than half the upkeep costs for the entire household.

I agree with you, however there can be more than one household in a house. In LCP's question it does not appear this is the case, and it probably does not happen often, however facts and circumstances determine. Kram said it better than I can in a different thread.

http://www.thetaxbook.com/forums/showthread.php?t=10275&highlight=cost+keeping+home

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.

[taxea]

"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"

Please provide me with the IRS rule that allows this. If there are two working adults in the household and they share the household expenses neither can claim HH. taxea

[Jesse]

See SCA 1998-041

[Burke]

. Sounds like parent needs to have TP move in with him and parent could file as head of household.

Are you sure? I thought no more HOH for adult children. Must be under 19, or 24 if student, or disabled.

[taxea]

www.eitc.irs.gov this is the most current site for HH and EITC taxea

[Jesse]

Are you sure? I thought no more HOH for adult children. Must be under 19, or 24 if student, or disabled.

Can file HOH if taxpayer paid over half the cost of keeping up a home that was the main home for all of 2008 of his/her parent who can be claimed as a dependent of the taxpayer, other than under a multiple support agreement. The parent did not have to live with the taxpayer.

See TTB pg 3-14.

[David1980]

www.eitc.irs.gov this is the most current site for HH and EITC taxea

Looks like a great site for EITC, but I'm not seeing much there on HOH.

If there are two working adults in the household and they share the household expenses neither can claim HH.

Assuming the "two households in one home" thing is not fact, that would only be true in an exact 50/50 split. Otherwise whichever one paid more than half would qualify HOH.

[taxea]

Form 886-H-HOH, Supporting Documents To Prove Head of Household Filing Status, and Form 886-H-DEP, Supporting Documents for Dependency Exemptions could also be employed to address filing status and dependency questions.

If there are two working adults in the house and they are sharing the household expenses then neither is paying more than half of the household expenses which equals to neither qualifying for HH.
taxea

[taxea]

Burke is correct...2 working adults in the house...no HH.

Someone who is 19 and not in school is an adult not a child.

there is no such thing as "a basic home" the law applies to the expenses of the home one is living in.

as for parents that do not live in the home, the taxpayer has to pay more than half the upkeep of the home and the support of the parents. taxea

[David1980]

ng the household expenses then neither is paying more than half of the household expenses which equals to neither qualifying for HH.
taxea

Only if they do an exact 50/50 split. Most living arrangements I've seen people provide their own food or take turns shopping, etc. The odds of an exact 50/50 split have gotta be like winning the lotto.

[taxea]

and to qualify for HH it can't be a 50/50 split one has to pay more than half. taxea

[David1980]

Exactly. Since 50/50 is going to be exceptionally rare then one will qualify for HOH.