HOH & Divorce

[Jesse]

Jesse
I'm sorry to be so blunt but, it doesn't appear that you are paying attention to what you are reading. There are very specific restraints on who can file HH and they are very clearly stated in the examples in The Tax Book. taxea

I don't believe you are sorry. For some reason you do not like me, why? You've already suggested I consult a professional and stated my questions upset you because I ask questions that should have been addressed in a basic tax course.

I am paying attention to what I'm reading, sometimes I don't understand everything I read but I do try. Sometimes what I read is clear as mud. Sometimes what was addressed in a basic tax course has changed over the years. Again, what is your beef with me?

Can you tell me which example this is clearly stated in The Tax Book?

[Bees Knees]

One very important rule is that the taxpayer legally claiming the dependent cannot file HH if he/she lives with another income producing adult...i.e. boy/girlfriend, parent, roommate, etc.

I find that this, often times, gets overlooked. taxea

TTB page 3-16 and 3-17. I see no scenario mentioned where Mom pays over ½ of the cost of the home, the child lives in the home, and another income producing adult also lives in the home.

HOH revolves around the issue of who actually pays over ½ the cost of the home, and whether or not the child actually lives with the taxpayer. If any income from another adult living in the home would disqualify HOH, even if the income were a small amount, then the over ½ the cost of home rule would be a moot point. That is the purpose of the over ½ the cost of home rule. The one claiming HOH has to be the one using his/her income to pay for most of the home expenses, not the one with the only income.

[David1980]

If taxpayer, taxpayers qualifying child and taxpayers father all live together, taxpayer pays over 1/2 cost of keeping up a home and taxpayers father had wages of $4,000 why wouldn't taxpayer be eligible to file head of household?

I can't find anything in the tax book that would disallow HOH for the TP. Perhaps I'm missing that page...

[taxea]

Jesse
I'm sorry to be so blunt but, it doesn't appear that you are paying attention to what you are reading. There are very specific restraints on who can file HH and they are very clearly stated in the examples in The Tax Book. taxea

[Jesse]

If taxpayer, taxpayers qualifying child and taxpayers father all live together, taxpayer pays over 1/2 cost of keeping up a home and taxpayers father had wages of $4,000 why wouldn't taxpayer be eligible to file head of household?

[taxea]

"Wouldn't that be a "facts and circumstance" decision? It would depend on how much income the other adult produces and who actually pays over half the cost to keep up the home."

No, the rules are quite clear. taxea

[Jesse]

One very important rule is that the taxpayer legally claiming the dependent cannot file HH if he/she lives with another income producing adult...i.e. boy/girlfriend, parent, roommate, etc.

I find that this, often times, gets overlooked. taxea

Wouldn't that be a "facts and circumstance" decision? It would depend on how much income the other adult produces and who actually pays over half the cost to keep up the home.

[taxea]

One very important rule is that the taxpayer legally claiming the dependent cannot file HH if he/she lives with another income producing adult...i.e. boy/girlfriend, parent, roommate, etc.

I find that this, often times, gets overlooked. taxea

[BHoffman]

OK, Thanks Dave. The main thing is whether Sis can file HOH or not. Sounds like she can.

[Davc]

[QUOTE=BHoffman;70344

I think 19 years old = qualifying relative instead of qualifying child. [/QUOTE]

Not if she's a full time student.

[BHoffman]

You guys are awesome! I learn something new every day here.

I think 19 years old = qualifying relative instead of qualifying child. I agree about the 8332 as this would apply to QC and not QR.

Thanks again, very much!

[Jesse]

The custodial parent must provide F8332 to the non-custodial parent each year that the nc parent takes the child as a dependent. The custodial parent claims HH every year. taxea

Yes, I am just trying to point out that if the child is no longer considered a minor child custody is no longer an issue, there is no longer a custodial and noncustodial parent. The child is either a qualifying child/qualifying relative or not and the Form 8332 cannot be used.

[taxea]

The custodial parent must provide F8332 to the non-custodial parent each year that the nc parent takes the child as a dependent. The custodial parent claims HH every year. taxea

[BHoffman]

Jesse - you may be right. My sister is Mom in this case, so I'm fully aware of the living arrangements and both Mom and Dad are in sync. I like form 8332 for clients when I'm not so sure.

[Jesse]

Taxpayer (Mom) is unmarried. Daughter is 19, single, and a full time (still in high school, no tuition paid) student. Daughter lives with TP and has no earned income. TP provides all support for Daughter.

2008 is Dad's year to claim daughter as a dependent. Per the divorce decree, they alternate years.

Can Mom file as HOH?

I'm pretty sure the answer is yes based on TTB, but still would like some reassurance.

Thanks!

BHoffman, I also would conclude the answer to be yes, for HOH.

But thinking out loud - once the daughter is beyond the minor status (age 19) I don't think you can use Form 8332 to allow the noncustodial parent to take the dependency deduction, Form 8332 applies only to minor children.

I may be incorrect or there may be an exception because the daughter is still in highschool?