head of household with Cousin?

[Unregistered]

Can a taxpayer be head of household with a cousin who has lived with her all year and has no income? Can the cousin be a dependent?

[Bill Tubbs]

Pub 17

Table 3-1 on Pg 27 has the requirements for claiming an Exemption. Cousin is not a Qualifying Child (fails test 1). Qualifying Relative (QR) tests 1-3 seem met; as long as taxpayer provides > 50% support, then yes, dependent using the QR rules.

Table 2-1 on Pg 24 has the requirements for HOH. Third section down is "QR other than your father or mother". The top sub-section of this says that the cousin in this case is a qualifying person. Therefore, as long as the other requirements for HOH are met, taxpayer seems to qualify for HOH as well.

Bill

[jainen]

something like that

Cousin is not a qualifying relationship for Head of Household, unless your dad married his sister or something like that.

[Roland Slugg]

Cousin as a QR or as an HoH qualifier

In order for the cousin to qualify the taxpayer to use HH filing status, the taxpayer must be able to claim the cousin as a dependent. Review the dependent rules for a "QR" first, and if the cousin qualifies as one, then review the HH rules next.

Added suggestion: When Bill Tubbs addresses questions about QC or QR, take heed. He knows those issues as well as anyone.

* * * * *
Since posting this reply my view has changed. It is now clear that the cousin can be claimed as a dependent, if all other qualifiers are met, but can not be the person to qualify the supporting taxpayer to use HoH filing status.

Btw, one of those "other qualifiers" is the cousin's gross income. In 2005 it was $3,200, and for 2006 I'm assuming it will be $3,300. There is a limited exception to this, however, if the person is permanently and totally disabled. See the 2005 instructions to F-1040, page 21 (or IRS Pub 501) for a definition of "permanently and totally disabled" or to read the specific exception to the gross income test.

[Unregistered]

Agree with Jainen - the cousin, assuming all tests are met, can be a dependent as a qualifying relative.

However, the cousin is a q.r. - not by virtue of a blood relationship but because of the special rule in §152(d)(H) - member of the household for a full year. That's why the table in Pub 17 is so easily confused.
HOH status expressly does not allow a §152(d)(H) q.r. to qualify a taxpayer for HOH. A cousin is treated the same as an unrelated (by blood) person for purposes of HOH.

New York Enrolled Agent

[jainen]

Cousin ain't listed

>>He knows those issues<<

That may be, but he is misreading the table 2-1 that he cites. The "third section down" has a tiny footnote #4, which explains that "The term 'qualifying relative' is defined under Exemptions for Dependents in Chapter 3." Cousin ain't listed.

[Unregistered]

Thank you all. I am not home (visiting my daughter in Lewiston Maine) so I do not have a quickfinder with me. From what you all said I am still not sure. I did read pub 17 a few times and still am not sure. The problem is that California says the cousin does not qualify. By the way, the cousin is disabled.

[Bill Tubbs]

Qr

>>He knows those issues<<

That may be, but he is misreading the table 2-1 that he cites. The "third section down" has a tiny footnote #4, which explains that "The term 'qualifying relative' is defined under Exemptions for Dependents in Chapter 3." Cousin ain't listed.

Yes, I see footnote #4:
The term "qualifying relative" is defined under Exemptions for Dependents in chapter 3.

Table 3-1, right side, is Tests To Be A Qualifying Relative. Point # 2 is:
The person either (a) must be related to you [...] or (b) must live with you all year as a member of your household.

So, while cousin does not meet (a), the cousin does meet (b), and therefore is eligible as a dependent using the QR rules.

*** CHANGE OF OPINION -- Dependent: yes; HOH: no ***

However, I forgot about footnote # 6:
"A person who is your QR only because he or she lived with you all year as a member of your household is not a qualifying person"

So, since the cousin is a QR because of the full-year member of household, that cousin is NOT a qualifying person for HOH.

(Basically the same explanation that NY Enrolled Agent supplied; and in agreement with Jainen)

Bill

[Roland Slugg]

Now agree with Jainen, et all

But do not include: ii Any person who is your dependent only because he or she lived with you for all of 2005.

I've read that section at least a dozen times, and its meaning never sunk in ... until today. My thanks to Jainen and Bill Tubbs for clarifying this.

This means that all those unmarried "families" ... typically M + W + W's child/children ... who live in M's home and are supported by M don't qualify M to use HoH filing status. This should be fertile ground for lots of IRS corrections, as I have the impression that many such taxpayers in this situation filed as HoH.

[jainen]

Feeling political

Feeling political today, so I'll give my opinion. No, not about that nonsense, just about this thread. I think the reason they kicked off all the honorable guys who are supporting single-parent families, was supposedly to endorse traditional families. However, they also kicked off all the extended families where honorable guys are supporting their cousins.

[Black Bart]

You mean that

In order for the cousin to qualify the taxpayer to use HH filing status, the taxpayer must be able to claim the cousin as a dependent.

there are cousins who are not dependents? I gave up going to family reunions years ago to avoid co-signing notes.

P.S. to jainen -- I caught that sly "slur." I'm reinstating your previous characterization.

P.P.S. to jainen -- I read Achebe's book (Things Fall Apart) and it was dull. There; take that!

[jainen]

Honest

>>I caught that sly "slur." I'm reinstating your previous characterization.<<

Honest--I didn't know I was talking about YOUR dad.

>>I read Achebe's book (Things Fall Apart) and it was dull.<<

Well, DUH!

[Black Bart]

What?

It was supposed to be dull?

>>Well, DUH!<< (Your ending remark is not insightful, poetic, or Druidic).

P.S. I bet you were secretly part of Schwarz's landslide.

[jainen]

in the future

>>you were secretly part of Schwarz's landslide<<

Hard to say--the dang ballots are getting so confusing, I don't even know who I actually voted for! The page was filled with arrows--each candidate had two (at least) pointing in different directions.

Santa Cruz passed a new law stopping cops from enforcing the old law about marijuana. I don't know if that will make the ballots easier or harder in the future.

[Black Bart]

Poll Problems

>>you were secretly part of Schwarz's landslide<<

Hard to say--the dang ballots are getting so confusing, I don't even know who I actually voted for! The page was filled with arrows--each candidate had two (at least) pointing in different directions.

Santa Cruz passed a new law stopping cops from enforcing the old law about marijuana. I don't know if that will make the ballots easier or harder in the future.

It would be nice if you could go back to the old, unimproved method, but you probably have too many people out there to do away with the gadgets.

We still go to an old school building where there's tables, chairs, and two pollwatchers (local people of known good character). We're handed a piece of paper and a little short, stubby #2 pencil. Take as long as you want to; fill in the circle out beside a candidate's name, and put the paper in a box by the door on the way out. It takes all day to count, but they're going to be in office for four years, so there's no rush.

About the dope problem, yeah, I guess the cops would have a hard time with that law. Crystal meth is a big problem here and we keep passing laws to restrict it, but they want the stuff (or the money from selling it) and are pretty resourceful. Farmers here use mobile tanks of liquid fertilizer which has some of the ingredients to make the stuff with and they'll follow him around until he has to unhook the fertilizer buggy from his pickup and go to the other side of the field for something. Then they drive up and drain out a couple of bucketfuls. If he sees them across the field and starts back around the turn row, they drive off before he can get back. There's no time to constantly chase them off and still make a living, so it's kind of like having a fly you can't swat buzzing around you.