I live in my own apartment with my cousin and plan on filing head of household. she does side work with her uncle but gets paid out of pocket so its not taxed. Can i still qualify for head of household. Do i need her ssn?
2007-01-09 00:36:11 · 6 answers · asked by terjar4 1 in Business & Finance ➔ Taxes ➔ United States
Did your cousin live with you the entire year? In order to be a "qualifying relative", your cousin has to meet the member of household or relationship test. (2) Gross Income and (3) Support.
If your cousin lived with you all year she meets the member of household test even though the relationship test isn't meet because cousin isn't a close enough relationship. Your cousin must have less than $3,300 of gross income. That includes wages paid out of pocket.
You must be providing OVER 50% of the person's total support for the year. Without answers to those questions, I can't say for sure.
2007-01-09 01:35:50 · answer #1 · answered by Fool in the Rain 6 · 0⤊ 0⤋
Sticky area since you disclosed the fact that your cousin is violating the law by not reporting earned income, but your scenario would allow you to file head of household if you can prove that you provided more tan half of their support and they lived with you for more than half the year. You will need their SSN.
A cousin is not a qualifying relative, but rather a qualifying person
because they meet the 3 tests:
1) Support
2) Gross income
3) Member of household
If you had a gf/bf who only made $2,500 and they lived with you more than
1/2 the year and you could prove that you provided more than 1/2 of their
support, you could claim HOH.
2007-01-09 00:55:08 · answer #2 · answered by 3eleven 4 · 1⤊ 1⤋
Cousin is not a qualifying person for you to file as head of household. You cannot file as head of household.
If your cousin lived with you 12 months, earned less than $3,300 whether "out of pocket" or not, you provided over half of her support, she is not filing a joint return with a spouse, and she satisfied citizenship requirements, then she is your dependent.
2007-01-09 04:03:40 · answer #3 · answered by ninasgramma 7 · 0⤊ 0⤋
A cousin might be a qualifying relative to be claimed as a dependent, but doesn't qualify you for head of household.
This would be the answer whether she was making money "under the table", which is illegal, or not.
2007-01-09 03:56:50 · answer #4 · answered by Judy 7 · 0⤊ 1⤋
A cousin does not meet the "relationship test" to qualify you for head of household. you need to find a child, stepchild, etc or brother, sister, parents, grandparents...interestingly, nieces and nephews qualify...but. alas, no cousins.
2007-01-09 01:26:28 · answer #5 · answered by Bill P 1 · 1⤊ 0⤋
Get a Publication 17 and read the various sections pertaining to your question. If your cousin is working outside the law then you are already on thin ice here. It might be wiser to not go there as the price you might have to pay won't be worth it.
2007-01-09 03:09:44 · answer #6 · answered by acmeraven 7 · 0⤊ 1⤋