Head of household

Scenario one

Two clients indicate they live together with their two minor children. Each client wants to file as head of household (HOH). Based on the information they provided, are they eligible to claim HOH?

The information appears incomplete or inconsistent as only one client can pay more than 50% of the household expenses for the household that they live in together. You must ask more questions to determine the amount each client paid towards keeping up the home. You also must document the client’s responses to the questions that you ask.

Scenario two

A new client who filed jointly with her spouse last year states she is no longer married. For the current tax year, she wants to file as head of household because her niece and nephew lived with her part of the year.

The information is incomplete so far. You must inquire further to get a clear picture of the client’s personal living circumstances such as who the children’s par­ents are and where they lived, whether anyone else can claim the children as dependents or as qualifying persons for HOH, the dates the children lived with your client, who else may have lived in the same home with your client and the amount each person paid towards keeping up the home.

Additional questions to consider

1. Your client has legal custody of the niece and nephew. How long did they live with the client during the year in question?
2. Does your client receive financial/govern­mental assistance to support the niece and nephew?
3. Was the divorce finalized?
4. Is your client responsible for maintaining the household and did they provide more than 50% of that support?

Scenario three

A client is claiming head of household with a parent as their qualifying person and pro­vided support for the parent.

The information is incomplete so far. You must inquire further whether the parent can be claimed as a depen­dent or as a qualifying person for HOH.

Additional questions to consider

1. Is the parent’s income below the thresh­old to be claimed as a dependent?
2. How much support/income did the taxpayer and the parent provide?
3. Is the parent a U.S. citizen, U.S. resident alien, U.S. national, or a resident of Canada or Mexico?
4. Is the parent living in the home with the taxpayer or was the taxpayer supporting the parent outside the home?

For more information on head of household filing status refer to Publication 501, Dependents, Standard Deduction, and Filing Information.