Chapter 4 - Dependent Related Filing Statuses

Question 1

Tie breaker rules for qualifying child dependent

Answer 1

1. If only one of the taxpayers is the child’s parent, the child is treated as the qualifying child (QC) of the parent.
2. If both taxpayers are the child’s parents, but they do not file a joint return together and both parents 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 the child lived with each parent the same amount of time, the IRS will treat the child as the QC of the parent with the greater AGI for the year.
3. If neither parent can claim the child as a QC, the child is treated as the QC of the person with the highest AGI for the year.
4. If either parent can claim the child but no parent does claim the child, the child is treated as the QC of the person who had the highest AGI for the year, but only if that person’s AGI is greater than the highest AGI of the child’s parents who could have claimed the child.

Question 2

Head of household filing requirements

Answer 2

Unmarried or “considered unmarried” on the last day of the tax year.
Paid more than half of the cost of maintaining the home
for the year.
Maintained a household for a qualifying person.

Question 3

Head of household qualifying person

Answer 3

Unmarried taxpayer: Certain qualifying children or qualifying relatives who lived with the taxpayer for more than half the year.
Unmarried taxpayer: A parent, if the taxpayer paid more than half the cost of maintaining that parent’s main home for the entire year and claimed the parent as a dependent on their return.
Married taxpayer considered unmarried: A child, stepchild, or foster child who lived with the taxpayer for more than half the year.

Question 4

Unmarried head of household

Answer 4

Must either:
1. Be legally separated under a decree of divorce or separate maintenance according to the laws of the state in which they live.
2. Meet all of the following requirements:
The person must file a separate return from their spouse.
The person must have provided more than half the cost of maintaining their home for the tax year.
The person’s spouse must not have lived in the home at any time during the last six months of the tax year.
Be able to claim as a dependent a qualifying person who lived with the taxpayer more than six months.

Question 5

Costs to include in costs of maintaining a household

Answer 5

Rent
Mortgage interest
real estate taxes
homeowners or renters insurance
repairs and maintenance
utilities
food eaten in the home

Question 6

Costs to exclude in costs of maintaining a household

Answer 6

Clothing, education, medical treatment, vacations, food eaten outside of home, transportation, fair rental value of a home owned by the taxpayer, services provided by the taxpayer or other members of the household, entertainment

Question 7

The rules for divorced, separated, or unmarried parents apply when

Answer 7

the custodial parent agrees to allow the noncustodial parent to claim certain child-related dependent benefits if all of the following conditions exist:

One or both of the parents provided more than half of the child’s total support (explained in the Qualifying Dependents and Support chapter) for the year.
At the end of the year, the parents of the child are one of the following:
Divorced or legally separated under a court decree of divorce or separate maintenance.
Separated under a written separation agreement according to state law.
Lived apart for the last six months of the year, regardless of whether they were ever married.
The child lived with one or both parents for more than half the year.

Question 8

Differences between the qualifying child dependent requirements and the qualifying person requirements for the head of household filing status

Answer 8

If the QC dependent is married and can be claimed as a dependent, they are a qualifying person for the HOH filing status.
If the QC dependent is married and cannot be claimed as a dependent, they are NOT a qualifying person for the HOH filing status.
If the potential dependent passed all of the qualifying child requirements for the custodial parent and they are not claiming them due to the divorced, separated, or unmarried parents rules, the child is the custodial parent’s qualifying person for the head of household filing status.
If the potential dependent is being claimed by a noncustodial parent as a dependent due to the divorced, separated, or unmarried parents rules, the child is not the noncustodial parent’s qualifying person for the head of household filing status.
If none of the above differences for a qualifying child exist, then the qualifying child dependent is also the qualifying person for the head of household filing status.

Question 9

Differences between the qualifying relative dependent requirements and the qualifying person requirements for the head of household filing status

Answer 9

If the QR dependent only passed the “member of household” portion of the Relationship/Member of Household requirement, then the qualifying relative is not a qualifying person for the head of household filing status.
If the QR dependent passed the “relationship” portion of the Relationship/Member of Household requirement and lived with the taxpayer more than half the year, they are a qualifying person for the head of household filing status.
If the QR dependent passed the “relationship” portion of the Relationship/Member of Household requirement AND didn’t live with the taxpayer more than half the year, they are NOT a qualifying person for the head of household filing status.

Question 10

HOH Married but considered unmarried QC

Answer 10

Must pass tests #4-9 and if fail move to qualifying relative:
4. Relationship – The potential dependent must be the taxpayer’s son, daughter, stepchild, foster child
5. Age – The potential dependent must be:
Under age 19 at the end of the year and younger than the taxpayer (or taxpayer’s spouse, if filing jointly).
Under age 24 at the end of the year, a full-time student, and younger than the taxpayer (or taxpayer’s spouse, if filing jointly).
Any age if permanently and totally disabled. (This means the “child” could be an adult.)
6. Residency – The potential dependent must have lived with the taxpayer more than half the year. Custodial parent only.
7. Support – The potential dependent must not have provided more than half of their own support for the year
8. Joint Return – This is currently the same as Test #2. The potential dependent is not filing a joint return unless only to claim a refund of withholdings or estimated tax payments. Only if they can be claimed as a dependent.
9. Special Case – If the potential dependent meets the rules to be a qualifying child of more than one person, the taxpayer must be the person entitled to claim the potential dependent as a qualifying child per the tie-breaker rules.(There is a choice only if one is a qualifying parent and the other qualifying taxpayer has AGI higher than the parent. If the parent has higher AGI, there is no choice. Additionally, if no parent is involved, the taxpayer must have the highest AGI of all qualifying taxpayers.)

Question 11

HOH Married but considered unmarried QR

Answer 11

Must pass tests #10-13: fail then not a dependent
10. Not a Qualifying Child – The potential dependent cannot be the taxpayer’s qualifying child or the qualifying child of any other taxpayer.
11. Relationship/Member of Household – The potential dependent must meet one of the following:
Be related to the taxpayer or spouse:
As a child, stepchild, foster child

12.Gross Income – The potential dependent’s gross income must be less than the annual maximum.4
(There is a sheltered workshop exception.1)
13. Support – The taxpayer must provide more than half of the potential dependent’s total support for the year. (There are exceptions for multiple support agreements, children of divorced, separated, or unmarried parents who lived apart, and kidnapped children.)

Question 12

HOH Unmarried but considered unmarried QC

Answer 12

Must pass tests #4-9 and if fail move to qualifying relative:
4. Relationship – The potential dependent must be the taxpayer’s son, daughter, stepchild, foster child, brother, sister, half-brother, half-sister, stepbrother, stepsister, or a descendant of any of them.
5. Age – The potential dependent must be:
Under age 19 at the end of the year and younger than the taxpayer (or taxpayer’s spouse, if filing jointly).
Under age 24 at the end of the year, a full-time student, and younger than the taxpayer (or taxpayer’s spouse, if filing jointly).
Any age if permanently and totally disabled. (This means the “child” could be an adult.)
6. Residency – The potential dependent must have lived with the taxpayer more than half the year. Custodial parent only.
7. Support – The potential dependent must not have provided more than half of their own support for the year
8. Joint Return – This is currently the same as Test #2. The potential dependent is not filing a joint return unless only to claim a refund of withholdings or estimated tax payments. Only if they can be claimed as a dependent.
9. Special Case – If the potential dependent meets the rules to be a qualifying child of more than one person, the taxpayer must be the person entitled to claim the potential dependent as a qualifying child per the tie-breaker rules.(There is a choice only if one is a qualifying parent and the other qualifying taxpayer has AGI higher than the parent. If the parent has higher AGI, there is no choice. Additionally, if no parent is involved, the taxpayer must have the highest AGI of all qualifying taxpayers.)

Question 13

HOH Unmarried but considered unmarried QR

Answer 13

Must pass tests #10-13: fail then not a dependent
10. Not a Qualifying Child – The potential dependent cannot be the taxpayer’s qualifying child or the qualifying child of any other taxpayer.
11. Relationship/Member of Household – The potential dependent must meet one of the following:
Be related to the taxpayer or spouse:
As a child, stepchild, foster child, or a descendent of any of them.
Brother/sister, stepbrother/sister, half- brother/sister.
Father, mother, grandparent, or other direct ancestor (such as great-grandparents), but not foster parent.
Stepfather or stepmother.
Son or daughter of a brother/sister or half- brother/sister (example: niece or nephew).
Brother or sister of the taxpayer/spouse’s father or mother (example: aunt or uncle).
Son-in-law, daughter-in-law, father-in-law, mother- in-law, brother-in-law, or sister-in-law.
Plus: Must live with the taxpayer more than half the year, except for parents, who do not have to live with the taxpayer if the taxpayer paid more than half the cost of maintaining the parents home.

or

Have lived with the taxpayer legally all year as a member of their household.
12.Gross Income – The potential dependent’s gross income must be less than the annual maximum.4
(There is a sheltered workshop exception.1)
13. Support – The taxpayer must provide more than half of the potential dependent’s total support for the year. (There are exceptions for multiple support agreements, children of divorced, separated, or unmarried parents who lived apart, and kidnapped children.)

Question 14

Form 8832

Answer 14

The child will be considered the qualifying child of the noncustodial parent, allowing them to claim the dependency, which in turns allows the Child Tax Credit and the Other Dependent Credit, if the custodial parent signs such an agreement.

Question 15

If the custodial parent releases a child’s dependency exemption to the noncustodial parent

Answer 15

Custodial parents may claim child and dependent care credit, earned income credit, and HOH
Noncustodial parent may claim CTC, ODC, ACTC, and dependency

Question 16

Exception to the residency requirement (noncustodial parent may claim)

Answer 16

Dependency, child tax credit, other dependent credit, additional child tax credit

Question 17

Residency requirement (only custodial parent may claim)

Answer 17

HOH, credit for child and dependent care expenses, earned income credit

Question 18

Noncustodial parent may not claim the child as

Answer 18

a qualifying child for head of household filing status or the Earned Income Credit. Instead, the custodial parent, if eligible, or other eligible person can claim the child for these benefits. If the child is a qualifying child of more than one person for these benefits, then the tiebreaker rules, discussed earlier in the chapter, will determine who is able to claim them.

Question 19

Custodial parent benefits claim

Answer 19

child and dependent care credit, CTC/ODC/ACTC, dependency, earned income credit, HOH

Question 20

Taxpayers may file as qualifying surviving spouse (QSS) if they meet the following requirements:

Answer 20

The taxpayer’s spouse died in either of the two tax years immediately preceding the current tax year.

The taxpayer was entitled to file a joint return with their spouse for the year the spouse died. It does not matter whether the taxpayer actually filed a joint return.

The taxpayer did not remarry before the end of the tax year in which the spouse died and remained unmarried through the end of the tax year for which the taxpayer seeks to use the qualifying surviving spouse filing status.

The taxpayer has a child or stepchild, but not a foster child, they can claim as a dependent or could claim as a dependent, except in 2023:

The child had gross income of $4,700 or more.
The child filed a joint return.
The taxpayer could be claimed as a dependent on someone else’s return

The child lived in the taxpayer’s home for the entire year, except for temporary absences, such as being away at college.

The taxpayer paid over half the cost of maintaining their household, which is the main home for the taxpayer and their dependent child.

Question 21

Qualified Surviving Spouse

Answer 21

A taxpayer may use the QSS status for only two years following the year of death of the spouse.

This filing status entitles the taxpayer to use joint return tax rates and the highest standard deduction amount (if the taxpayer does not itemize deductions).

After two years of using the QSS status, a taxpayer can file as head of household (if qualified) or single, if not remarried.

Question 22

Qualified Surviving Spouse QC

Answer 22

Must pass tests #4-9 and if fail move to qualifying relative:
4. Relationship – The potential dependent must be the taxpayer’s son, daughter, stepchild
5. Age – The potential dependent must be:
Under age 19 at the end of the year and younger than the taxpayer (or taxpayer’s spouse, if filing jointly).
Under age 24 at the end of the year, a full-time student, and younger than the taxpayer (or taxpayer’s spouse, if filing jointly).
Any age if permanently and totally disabled. (This means the “child” could be an adult.)
6. Residency – The potential dependent must have lived with the taxpayer in their home all year, except for temporary absences
7. Support – The potential dependent must not have provided more than half of their own support for the year
8. Joint Return – This is currently the same as Test #2. The potential dependent is not filing a joint return unless only to claim a refund of withholdings or estimated tax payments. If the taxpayer could have claimed the child as a dependent, except for the fact that the taxpayer or child failed tests 1, 8, or 12, the child can still be a qualifying person for QSS
9. Special Case – If the potential dependent meets the rules to be a qualifying child of more than one person, the taxpayer must be the person entitled to claim the potential dependent as a qualifying child per the tie-breaker rules.(There is a choice only if one is a qualifying parent and the other qualifying taxpayer has AGI higher than the parent. If the parent has higher AGI, there is no choice. Additionally, if no parent is involved, the taxpayer must have the highest AGI of all qualifying taxpayers.)

Question 23

Qualified Surviving Spouse QR

Answer 23

Must pass tests #10-13: fail then not a dependent
10. Not a Qualifying Child – The potential dependent cannot be the taxpayer’s qualifying child or the qualifying child of any other taxpayer.
11. Relationship/Member of Household – The potential dependent must meet one of the following:
Be related to the taxpayer or spouse:
As a child, stepchild in their home all year, except for temporary absences.

or

Have lived with the taxpayer legally all year as a member of their household.
12.Gross Income – The potential dependent’s gross income must be less than the annual maximum.4
(There is a sheltered workshop exception.1) If the taxpayer could have claimed the child as a dependent, except for the fact that the taxpayer or child failed tests 1, 8, or 12, the child can still be a qualifying person for QSS
13. Support – The taxpayer must provide more than half of the potential dependent’s total support for the year. (There are exceptions for multiple support agreements, children of divorced, separated, or unmarried parents who lived apart, and kidnapped children.)