CH 5 Flashcards
What are requirements of HOH?
1) taxpayer
A)be unmarried or considered unmarried
B) paid more than half of the cost of maintaining the household
C) maintains a household with qualified child or relative
’s mother or father ( lived with taxpayer for entire year).
How do you determine a taxpayer “maintain” his household?
rent mortgage interest real estate taxes insurance on the home property taxes repairs utilities food eaten in the home.
What does not match with maintain household for HOH?
clothing education medical treatment vacations life insurance transportation rental value of home owned by the taxpayer Service provided by the taxpayer or other members of the household
What are HOH exceptions?
Married qualifying child-QC of a taxpayer cannot be married unless the taxpayer can claim an exemption for that child.
Nonrelative dependent-dependent must be actually be related to the taxpayer as indicated in the relationship test for a qualifying relative.
What is multiple support agreement?
Taxpayers who have qualifying relative dependent must have provided over half of the support for those dependents by themselves.
They cannot qualify for HOH.
Who qualifies for MFS?
person must file separate return from their spouse
person must have provided more than half the cost of maintaining their home for the tax year.
the home must have been the principal place of abode of the taxpayer and their dependents for more than half the tax year.
taxpayer’s spouse must not have lived in home at anytime during the last six months of tax year.
What is the disadvantages of married filing separately statues?
SD is 0 unless spouse itemizes
effective tax rates are higher
many deductions and credits are phased out at lower income levels or disallowed completely.
How do you qualify for qualifying widower( QW)?
taxpayer’s spouse died in either of the 2 tax years immediately preceding the current tax year.
Taxpayer paid over half the cost of “maintaining” their household.
spouse’s death of the actual year is considered joint status. Within two years, taxpayer can file for QW.
What are rules for filing divorce and separated parents?
Rules apply even if the parents were married to each other.
one or both of the parents provided more than half the child’s total support
Divorced or legally separated under a court decree of divorce or separate maintenance.
separated under a written separation agreement.
lived apart for the last six months of the year regardless of whether they were married.
Child lived with one or both parents for more than half the year.
How do you qualify for tie breaker rules?
one of the persons is the child’s parent, the child is treated as QC of the parent.
if not filing joint but parents both claim the child, the IRS will treat the child as the qc of the parent with whom the child lived for the greater number of nights during the year.
if parent can claim the child but no parent does claim the chlld, a child is treated as QC of the person who had the highest AGI for the year.
