quick question

[oceanlovin'ea]

Client is coming in soon. She is single, pays all the household expenses for the home she shares with her sister and her sister's son. Sister received disability income from SS.
Nephew graduated in June and didn't work last year. Joined military and left Jan 4th for basic training.

Can she claim HOH? She can't claim sister because sister receives income though not taxable, right?

but if sister doesn't file a return can she claim the nephew?

I went down the chart on page 3-18 but it doesn't address this particular situation.
Just want to be cautious and ask before I put my foot in my mouth.

Thanks.

Linda

[fliszt]

Linda, this

is what I found on 3-15. Qualifying child: relationship is nephew. child lived w/client more than half the year. child can not provide over half his support. child is NOT a qualifying child of anyone else. (mother can not claim child.) gross income less than $3650. support provided is over half. Then lower right side of pg (HOH) "The HOH filing status......who provided a home for a qualified individual." How old was nephew last year? Was he in school over half the year? Did sister pay for over 1/2 the house hold expenses? rent/mtg payment, taxes, etc.
Larry

[BP.]

She can't claim sister because sister receives income though not taxable, right?

It is not sister's receipt of non taxable SS income that determines whether taxpayer can claim dependency exemption (that is, the gross income test is not failed) but rather whether your client provides more than 50% of her sister's support.

[oceanlovin'ea]

Her sister spends all her money (and more) but I don't know what on but it is not going in savings. So I am assuming that she is supporting herself or giving her grown kids money.

But client does pay all the household expenses.

The nephew earned only around $2000 to $3000 last year. I will probably do his return too. My client gave him money from time to time but so did his mother.

Client can file HOH and use him as reason but not dependent, can't she?

I think I am overthinking this or making it harder than it really is. I guess I am more paranoid this year about making a mistake.

Linda

[BP.]

Client can file HOH and use him as reason but not dependent, can't she?

No that won't fly. But I would dig into the numbers for this group. On the surface it warrants a closer look for potential dependency exemptions for sis & nephew (as well as HOH.) Cheers!

[ChEAr$]

Linda,

see the excellent chart on page 25 of publication 25. The way I see it, the nephew
is a qualifying child for purposes of aunt's HOH status.

[oceanlovin'ea]

thanks

Thanks Harlan, that is a good chart. I made copies to put with her return just in case.

She will have to claim him as a dependent but that shouldn't matter because he made lower than his standard deduction. So if they did take any money out, he would get it back.

I think I am safe in using HOH and claiming him this year. This will be the only year.

Thanks again.

Linda

[appelman]

I give up. What the devil is "Publication 25?"

I give up. What the devil is "Publication 25?"

[BP.]

Just a lil' typo, obviously- Pub 17 (p. 25) is what was meant.

[oceanlovin'ea]

want to be clear

Client paid all household expenses in home she shares with her sister and her nephew. Sister gets social security disability. nephew graduated in June and worked a little, earning around $3000.
Client should be able to file HOH. Who knows what sister spends her money on? She probably spent some of it on her son (client's nephew)

From earlier posts, I filed her as HOH and claimed nephew as dependent. That gives her EIC. So I don't want to raise any flags or not file this right.

According to chart on page 25 of pub 17, nephew is qualifying relative. Guess I am just second guessing whether client can claim him as dependent.

HELP!!

Linda

[BP.]

Linda, once you determine he is in fact a Qualifying Relative, then he is a "qualifying person" for HOH. Sounds like you are unsure if the nephew is a QR for dependency purposes, so check your TTB 3-15 QR dependency tests. Hope that will help you. Barb

[Black Bart]

...From earlier posts, I filed her as HOH and claimed nephew as dependent. That gives her EIC. So I don't want to raise any flags or not file this right...

Can't say I blame you for going ape over such. When somebody walks in and says something like "My sister-in-law lived with me part of the year, and her mother's there too, both got SS, but sis also works some, has her kid and a half-brother's cousin's nephew with her and somebody's ex-husband is trying to claim them but she and I made the house payments and not sure who paid the most, but ex paid some money too, don't know how much and one of the kids may be filing...etc...etc...etc.. Can I claim them?" At that point all the charts for all the status requirements meld/blend together inducing dementia/paranoia until my internal computer jumps the tracks and there's an overwhelming urge to kill a congressperson who helped transform this muck into law.

Now, having said that, I agree with the others that she's entitled to dependency and HOH. Also, I think you're right about EIC (per that chart): 1. Qualifying child? Yes - nephew. 2. Under age 19? Yes (I assume) 3. Child not filing a joint return? No. 4. Lived with you more than half of 2009? Yes.

Only fly in the EIC soup would be if mom worked/filed and tiebreaker rules got involved, but since she's not, that cures 99% of your problems with that (as well as HOH and dependency issues) 'cause these things generally sail right through if nobody's disputing your claim.

According to chart on page 25 of pub 17, nephew is qualifying relative. Guess I am just second guessing whether client can claim him as dependent.

Wouldn't he also be a qualifying child (child only has to have not provided more than half his own support for that status)? That would be easier to justify than the QR requirement of client having to have provided over half his support.

[oceanlovin'ea]

my only question

My only question that I have is if the mother who gets ss disability provided more than half his support.
But when you really think about it, if my client is paying all the household expenses, she is probably paying over half his support.

Okay. Thanks for the help guys.

Linda

[veritas]

What's wrong with

the HOH chart on page 3-18 of TTB?