Tammy provides over 1/2 support for her 18 year grandson. The grandson earns 4,200.00 working part time and is saving the money to atttend college next year. The grandson lives in the home the entire year. Can Tammy file head of household?
2006-10-27 06:53:13 · 5 answers · asked by brownskeith 1 in Business & Finance ➔ Taxes ➔ United States
Assuming the grandson was 19, then:
Tammy can NOT claim Head of Household. Why? Well, the one thing that disqualifies her is she has no dependents. At the end of the tax year, if her grandson is older than 23 or older than 18 and not a full-time student AND his income is higher than the exemption amount for the year ($3200 for 2005 and $3300 for 2006), then he can be no ones dependent. If he were attending full-time school for at least 5 months during the tax year, then because he lived there at least 6 months and because he didn't provide over half of his own support, then he would be the qualifying child (a.k.a. dependent) of Tammy and Tammy would be able to file as Head of Household. But, because he is not in school, he is not a dependent.
However, since the grandson is under 19, his income is irrelivant. All that matters is he doesn't provide at least 1/2 of his own income. Therefore, he is a qualifying child (a.k.a. dependent) and since Tammy pays for over 1/2 the costs of the home that her grandson lives in for at least 1/2 the year, she can file as Head of Household. If she is married and lived with her spouse at any time in the 2nd half of the year, she would not be able to file as Head of Household.
2006-10-27 10:03:13 · answer #1 · answered by TaxMan 5 · 0⤊ 0⤋
Tammy meets criteria guidelines; lived in home over half the year, student, over 1/2 support, relationship. If the grandson attends college next year Tammy can claim head of household and take him as a dependent until age 24. She may also get the various education credits available. Grandson can make 4,200.00 and get a refund of total federal income tax withheld even though his dependency is released to Tammy.
2006-10-27 14:02:58 · answer #2 · answered by acmeraven 7 · 0⤊ 1⤋
Yes, Tammy can file as Head Of Household for tax years starting in 2005 . Her Grandson meets the Relationship, Residence, Age, and Support tests to be claimed as a Qualifying Child.
If two or more taxpayers claim a dependent as a qualifying child in the same year, the IRS will use the following tie-breaker tests to determine which taxpayer is eligible to claim the dependent. The tie-breaker tests are listed in order of priority.
The child will be the qualifying child of:
the parent,
the parent with whom the child lived for the longest time during the year,
if the time was equal, the parent with the highest adjusted gross income,
if no taxpayer is the child's parent, the taxpayer with the highest adjusted gross income.
2006-10-27 18:23:03 · answer #3 · answered by RamsGod 3 · 0⤊ 0⤋
Check with your tax preparer, I believe Tammy would be able to claim the grandson as a dependent as long as his parents are not.
2006-10-27 13:56:35 · answer #4 · answered by Anonymous · 0⤊ 1⤋
As long as the grandson is un-married, a U.S. citizen or legal resident and is not the qualifying child of someone else, i.e. his mother. Tammy may claim her grandson
2006-10-27 14:08:21 · answer #5 · answered by daoco 4 · 0⤊ 1⤋