Filing Status: Qualifying Widow (QW) and Head of Household (HH)Filing Status

Question 1

What are the advantages of using the QW filing status?

Answer 1

1. MFJ tax rates

2. Highest Standard Deduction

Question 2

What is the filing status by year for QW?

Answer 2

Year 1: Year of death of spouse: MFJ
Year 2: QW if you meet conditions
Year 3: QW if you meet conditions
Year 4: do not qualify for QW - pick next best status
surviving spouse remain unmarried during all of the first three years

Question 3

What are the requirements for QW status? (3)

Answer 3

1. entitled to file MFJ in the year of death and must not remarry
2. Must pay MORE than 50% of the cost of the home that is the principal residence for the qualifying dependent
   3 Dependent must be son, daughter, step-son, step-daughter or adopted child (NOT A Foster child)

Question 4

What are qualifying expenditures for maintaining a household for both HH and QW status? (3)

Answer 4

1. Housing expenses
2. utilities
3. food eaten in the home

Question 5

What items are EXCLUDED when determining the cost of maintaining a household for both QW and HH?

Answer 5

1. clothing
2. education
3. medical exp
4. vacations
5. transportation
6. life insurance
7. Cost of Services provided by the TP or the dependent

Question 6

HH/QW : What are acceptable temporary absences from the home for the qualifying dependent ?

Answer 6

1. education
2. vacation
3. medical
4. business
5. military
6. juvenile detention

Question 7

What marital status can someone have in order to file HH?

Answer 7

1. Unmarried

2. considered unmarried

Question 8

What is the advantage of claiming the HH filing status?

Answer 8

lower tax rates than Single and MFS

Question 9

When is a person “considered” unmarried for HH? (2)

Answer 9

1. Did not live with spouse anytime during the last 6 months of the year
   2 . spouses filed separate returns

Question 10

What are the three requirements for claiming HH?

Answer 10

1. TP must be unmarried or considered unmarried on the last day of tax year (not a surviving spouse)
2. QP must live with the TP for more than 1/2 year (except parent)
3. TP must pay MORE than 1/2 cost of maintaining the home

Question 11

Who is a qualifying person for HH? (4)

Answer 11

1. QC that the TP claims as a dependent (includes foster child)
2. child of non-custodial parent with a 8332
3. Parent (does not have to live in the home BUT the TP pays more than 1/2 cost of maintaining the parent’s home)
4. QR by blood or marriage that lived with the TP for more than 1/2 year

Question 12

What is Form 8332?

Answer 12

Allows the non-custodial parent to claim a child as a dependent for the Child Tax Credit Only

Question 13

Who is a custodial parent?

Answer 13

The parent the child lives with the greater number of nights during the year.

Question 14

What is form 8867?

Answer 14

Paid prepare’s Due Diligence checklist for eligibility for HH. Failure to do this could lead to a $530 fine.

Question 15

Does QW or HH allow foster children to be included as qualifying relative?

Answer 15

HH not QW

Question 16

Who are qualifying dependents for QW?

Answer 16

children, stepchildren, adopted children

NOT foster children