Hoh

[veritas]

I have a client who's son lived with her all year. He is 26 years old with income under $1,000.
I believe he still qulifies as a dependent. However the mother no longer has a qualifying dependent for head of household?

Secondly she has a minor daughter who lived with her all year. She can not claim the daughter because she does not provide over one half of her support. The daughter receives SSA. So she does not get the dependent deduction. The mom can still qualify for EIC. Again the mother does not get head of household?

Do I have this right?

[RLymanC]

Hoh

The mother can use either child for HOH filing status. One is a qualifying child and the 26 year old, because he did not earn over $3,200, is a qualifying realtive.

Mother can claim EIC for minor daughter because that child does not have to be a dependent for EIC purposes.

[Unregistered]

HOH - yes

the mother would still be HOH, she has a qualifying dependent for whom she provided more than 1/2 support.

TTB pg. 3-13 (2a) - Taxpayer paid over half the cost of keeping up a home in which the taxpayer lived and in which one of the following persons lived:

a) any person the taxpayer can claim as a dependent.

would like more answers from the group relating to the daughter.

[Bird Legs]

Daughter-dependent?

The minor daughter receives SSA, therefore, cannot be claimed as dependent?
What does the daughter do with the money? If it is not spent on her support,
such as going into savings, etc. then mother can claim her as dependent.

[Gretel]

Hoh

TBB pg.3-13 2)b) ...the taxpayer's unmarried qualifying child who is not a dependent of the taxpayer.

I read it that even if the daughter can not be claimed as a dependent(which needs to be determined) mom still get HOH.

[veritas]

Every dollar of the social security is spent. Mother is low income and does not provide over one half of daughters support. Not even close.

[veritas]

According to pg 3-15 the daughter does not meet the support test so is not a qualifying child?

[veritas]

Quickfinder

I had to find the answer in Quickfinder. Their expalnations make more sense.

[Gretel]

Veritas

What answer did you come up with?

[veritas]

The daughter is not a qualifying child or a qualifying relative since mother does not provide over half her support. No head of household.

The son is not a qualfying child because he is 26 years old. He is a qualifying relative because his income is under 3200 and she provides more than half of his support. He qualifies the mother for head of household.

On page 4-6 and 4-7 of Quickfinder they address my questions.

[codewizard]

1. Son - too old for QC if not disabled. If not in the house for 12 months DQ'd for QR. GI > 3200 DQ'd for QR.

*** QRs must have had someone provide OVER HALF of their support ***

2. Daughter - SSA (social security benefits???) does NOT count toward income. It may count toward support depending upon what is done with it.

*** QCs MUST NOT provide more than half of their own support. ***

3. Mom - must pay OVER HALF of the upkeep of the home AND have a Qualified Person as a dependant for HOH.

Don't focus on INCOME only. The rules for QC and QR, are differant. DON'T CONFUSE THEM. Pub 17 page 31 has a worksheet you should use to decided who is or is not QR/C.

[Gretel]

Agree

I agree with codewizard. Since mother provides over half of support for son and son's income is under limit he qualifies her for HOH.

So it's a mute point to discuss if daughter also qualifies her for HOH if you just look at this situation.

Daughter qualifies mom too since she meets the income test = 0. I thought you confused support test with income test.

[BP.]

I'm not quite seeing yet how you figure daughter qualifies mom for HOH. Daughter is not a QC, as she fails the support test, in that she DOES provide more than half of her own support. Of course, as you point out, moot in this situation, as QR son qualifies mom for HOH.

[Gretel]

Me neither

I misunderstood the paragraph I quoted earlier.

It's a bad situation though, to kick a real low income person out of all benefits because kid receives a little too much SS.

[veritas]

She still got eic because of the daughter.

And secondly they paid no tax on $10,000 of ssa benefits.