Head of Household Question

[S T]

I have a Mother that has supported her 45 year old son for 2012, permanently disabled - son received $ 5,000 in Sick Pay - code J - so is non taxable - SSA benefits were awarded in 2013, but nothing received in 2012

Would the $ 5,000 in Sick Pay not be included for the Gross Income Test?

Son has his own Residence and does not reside with Mother --Mother has made all of the mortgage payments, utility payments etc for the son over $30,000 in support.

I am thinking that the Mother will not qualify for HOH as the Son did not reside with her?

And if the son does not reside with the Mother, she also can not claim as a dependent.

Thoughts


Sandy

[geekgirldany]

I believe he can be taken as a dependent because there is an exception on the member of household test and age test because he is disabled. So he can be a qualifying child. Sick pay would not be included in the gross income test because it is non taxable but also because he can be taken as a qualifying child and not qualifying relative. So that test does not apply.

It appears she can not take head of household though because they were not living in the same house. Her keeping up the home is not enough, she must also be an occupant. I can not find any exceptions for disability under HOH except temporary absences.

[BP.]

I am thinking that the Mother will not qualify for HOH as the Son did not reside with her?

And if the son does not reside with the Mother, she also can not claim as a dependent.

Dependency- yes. Not QC- fails member-of-household test. Yes QR- this dependent does not have a member-of-household test.

HOH- no. The only family member that can qualify taxpayer for HOH while residing elsewhere is parent.

Pub 17, pp. 32-33.

[mastertaxguy]

Disabled Child/HOH Issues

Dependency- yes. Not QC- fails member-of-household test. Yes QR- this dependent does not have a member-of-household test.

HOH- no. The only family member that can qualify taxpayer for HOH while residing elsewhere is parent.

Pub 17, pp. 32-33.

BP is correct, of course (See also TTP P. 3-13), but one wonders if some planning would be appropriate. If mom is going to continue to pay the mortgage payments and such, is she on the title to the other home and/or on the mortgage so as to be able to deduct mortgage intereset and property taxes(if any)?

[geekgirldany]

Dependency- yes. Not QC- fails member-of-household test. Yes QR- this dependent does not have a member-of-household test.

Pub 17, pp. 32-33.

Although I can not find it in Pub 17, TTB leads me to believe that he can be a QC because there is an exception to the member of household test. Page 3-19 in TTB.

[S T]

Thanks all of you!

Dependency okay - no HOH

BP is correct, of course (See also TTP P. 3-13), but one wonders if some planning would be appropriate. If mom is going to continue to pay the mortgage payments and such, is she on the title to the other home and/or on the mortgage so as to be able to deduct mortgage intereset and property taxes(if any)?

I wish I would have known from the client - no Mother was not on title or Loan - so I do not see how I can claim the Mortgage Interest - which the Mother could certainly use on her 2012 Return due to a Retirement 401K inheritance.

Mother liquidated an inheritance (thru 401K plan - and did not rollover) and has now paid of the Disabled Son's Mortgage, and Son will be receiving SSA Disability (approved) and a State Pension due to Disabiliy -

So all changes for 2013.

What a "maze" this was to figure out.

Thanks for all the support I receive from everyone! You are truly appreciated!

Sandy