Hurricane Katrina Housing Deduct

[thomtax]

Have Turbo Tax client needing amended return for 2006. When he filed, he did the following:

He provided housing for Hurricane Katrina victim and claimed her as a dependent - no relation

I can find no basis for making this claim. The only allowance that I can locate is the additional $500 exemption amount from form 8914.

Since the person is living in his home, is there any way to claim head of household without the individual being listed as a dependent.

Am I missing something?

Thanks for any guidance.

LT

[Black Bart]

Thom - a few questions

Have Turbo Tax client needing amended return for 2006. When he filed, he did the following:

He provided housing for Hurricane Katrina victim and claimed her as a dependent - no relation

I can find no basis for making this claim. The only allowance that I can locate is the additional $500 exemption amount from form 8914.

Since the person is living in his home, is there any way to claim head of household without the individual being listed as a dependent.

Am I missing something?

Thanks for any guidance.

LT

How long did she live with him? I'm assuming less than 12 months or she made too much money or he provided less than half the support since you say there's no basis for the claim. I agree the only claim I see is the 8914. Don't see how HH status without a dependent would fly because it has to be your child that's not a dependent. And for HH status otherwise, she has to be a dependent and live there over six months.

Did he request an amended return for this or is it something you discovered while probing '07 data? Sometimes it's better to not unearth these skeletons -- aka "let sleeping dogs lie."

[thomtax]

8 months but is not a qualifying child or relative. Amended return brought on by CP2000. He is being charged for a 1099R that was not reported, 0 taxable, but IRS is charging the full amount of distribution. He asked to get everything right.

LT

[Black Bart]

Katrina girl

8 months but is not a qualifying child or relative. Amended return brought on by CP2000. He is being charged for a 1099R that was not reported, 0 taxable, but IRS is charging the full amount of distribution. He asked to get everything right.

LT

Guess you're stuck as the bearer of bad tidings -- no tax on the 1099, but exemptions reduced by $2,800 (up $500 & down $3,300). Funny; if he had put it all down in the first place (most 1099R guys know they've got one coming), then no 1040X required and a 95% chance the Katrina girl's dependency would never have been questioned.

[thomtax]

Even Worse

Guess you're stuck as the bearer of bad tidings -- no tax on the 1099, but exemptions reduced by $2,800 (up $500 & down $3,300). Funny; if he had put it all down in the first place (most 1099R guys know they've got one coming), then no 1040X required and a 95% chance the Katrina girl's dependency would never have been questioned.

He loses the head of household status. Also, not only was he claiming the Katrina housing of $500, plus claiming the same person as a dependent, which got him the head of household.
He's discouraged, but he is a very honest person who thought he was doing it right. "The box told him ok." His comment was "It will hurt, but I want it right".

LT