Sorry, you can't use that filing status

[powerage]

Last year, client was allowed to file HOH by mistake.

She is 25, lives at home with parents, sis and grandma, and grandma has no income. No one pays more than 50% upkeep. She wanted to claim her sis as a dependent and file HOH. After getting all of the facts straight, I explained to her why she could not file like that way and had to file single. I also explained that her parents would file jointly, claiming sis and grandma. I then prepared her return, but she did not want me to file it. She was unhappy with her refund, which was still a pretty good sum. So it is on hold and I doubt I will see her again.

But now, lets say she did pay more than 50% of the cost of the home, and provided more than 50% to the upkeep of her sister and/or grandma, then she could use HOH, correct? Provided there was proof, of course.

[ChEAr$]

If, IF... and IF

Last year, client was allowed to file HOH by mistake.

She is 25, lives at home with parents, sis and grandma, and grandma has no income. No one pays more than 50% upkeep. She wanted to claim her sis as a dependent and file HOH. After getting all of the facts straight, I explained to her why she could not file like that way and had to file single. I also explained that her parents would file jointly, claiming sis and grandma. I then prepared her return, but she did not want me to file it. She was unhappy with her refund, which was still a pretty good sum. So it is on hold and I doubt I will see her again.

But now, lets say she did pay more than 50% of the cost of the home, and provided more than 50% to the upkeep of her sister and/or grandma, then she could use HOH, correct? Provided there was proof, of course.

Sure she could IF she met the % test. of course in this case the home is probably
owned by parents, so there's a large chunk of the costs right there.

[Koss]

Uniform Definition of a Child

I agree that based on the fact pattern you described, she probably does not qualify for Head of Household filing status.

But under the current rules, it appears that she could claim her sister as a qualifying child for purposes of the dependent exemption, the Child Tax Credit, the Earned Income Credit, and the Child and Dependent Care Credit, to the extent that these credits are applicable.

The "paid more than half" is only applicable to "keeping up the home," and that's only applicable to Head of Household.

For the other benefits of a qualifying child, there is no requirement that the taxpayer support the child by any amount. The requirement is that the child cannot be providing more than half of her own support.

That said, in your scenario, the parents certainly have the "higher claim" to the qualifying child. If your client claims her sister and her parents also claim her sister, then the parents will win under the tiebreaker rules.

But if the parents choose not to claim the sister, then your client could do so.

I think these rules are changing for 2009 tax returns.

No, she can't claim her grandma. That would only work under the rules for qualifying relative. And those rules DO require support.

BMK

[taxea]

With that many adults in the house she cannot legally file HH.taxea

[David1980]

With that many adults in the house she cannot legally file HH.taxea

What's the largest number of adults that can live in a house before nobody is allowed HH?

[erchess]

And Taxea

can you give us a cite please?

[powerage]

I should add, sis is in high school and the taxpayer would then qualify for the EIC.

If she can prove that she paid more than 50% for the home and more than 50% for her sis, then I would file her HOH. I would have to see the proof myself though. The IRS really says nothing on the amount of people living there. Parents file joint and claim grandma. This is how I see it.

[BP.]

If she can prove that she paid . . . more than 50% for her sis

Not required.

[newbie]

With that many adults in the house she cannot legally file HH.taxea

can you give us a cite please?

because there is too many adults in the house? or your assuming none of the adults are providing more than 1/2 of cost of keeping up home?

[Larmil]

because there is too many adults in the house? or your assuming none of the adults are providing more than 1/2 of cost of keeping up home?

House, Household, Home - Define each word. They are not necessarily thr same thing.

[newbie]

House, Household, Home - Define each word. They are not necessarily thr same thing.

So I have a house that I call my home with my mom, dad, sister, grandma that make up the househould. My mom never worked & my dad was hurt in an accident in January 2008 and hasn't been able to pay the bills, sis is still in highschool and hasn't had any luck finding a part time job and grandma takes her social security check straight to the casino the 3rd of every month - didn't win more than 100 bucks all of 2008. I have made the rent payment, paid all utilities, and provided most of the food to put on the table in 2008. I am hoping 2009 will be a better year but for right now I'll take what I can get. But because there are too many adults in the house I can't file HOH?

[BP.]

So I have a house that I call my home with my mom, dad, sister, grandma that make up the househould. My mom never worked & my dad was hurt in an accident in January 2008 and hasn't been able to pay the bills, sis is still in highschool and hasn't had any luck finding a part time job and grandma takes her social security check straight to the casino the 3rd of every month - didn't win more than 100 bucks all of 2008. I have made the rent payment, paid all utilities, and provided most of the food to put on the table in 2008. I am hoping 2009 will be a better year but for right now I'll take what I can get. But because there are too many adults in the house I can't file HOH?

HOH with sister as dependent --- provided mom & dad aren't claiming her, though that sounds unlikely.