Taxes-HeadofHousehold
Ronald Kolbe
I have a tax question. In reading the tax guides and forms, it
looks like the NCP who is paying child-support could file as a head of
household. True, the NCP can not claim the deduction, but the writeup
appears to state that if you are paying half or more-than half of a person's
support you are a head-of-household. This move you into a lower tax rate.
Am I reading this right?
--
Ron Kolbe
CJTMOM
Sorry you are not reading it quite right. If the dependent you pay half
of the support for is your "child" (in tax law, child, foster child,
grandchild any child qualifying as "taxpayers child" ) then that child
must live in your home the majority of the year not counting time away for
school or college. The rule does apply to some adult dependents
differently, but only the parent who has physical custody more than half
the year may claim head of household status. That is independent of
whether or not you may claim the children as dependents that depends on
the wording of the divorce or on whether your spouse agrees you may claim
one or more of the children.
Carol
Enrolled Agent in Virginia
Jeannie Williams
>Hi people,
>
> I have a tax question. In reading the tax guides and forms, it
>looks like the NCP who is paying child-support could file as a head of
>household. True, the NCP can not claim the deduction, but the writeup
>appears to state that if you are paying half or more-than half of a person's
>support you are a head-of-household. This move you into a lower tax rate.
>Am I reading this right?
>--
>Ron Kolbe
>
I believe that to file as head of household, the dependent child must
also live with you for the majority of the year (or is it the last 6 - 8
months of the year). However, even if the CP filed as head of household,
the NCP parent *can* claim the kid as a *deduction* , even if the kid
does not live with them for the majority of the year, as long as the NCP
has a written agreement to this effect from the CP.
But double check with a CPA, which I am not.
-jeannie
Caitlin Ni Houlihan
Ron
The IRS is very particular about filing Head of Household, the
following is directly from the IRS (there attributed)
This filing status is for _unmarried_ (their distinction) individuals
who provide a home for certain other persons (some _married persons
who live apart_ may also qualify). You may (claim this status) _only
if_ you were unmarried or legally separated as of December 31, 1995.
But either 1 or 2 below must apply to you.
1. You paid over half the cost of keeping up a home that was the
main home for all of 1995 of your _parent_ whom you can claim as a
dependent. Your parent did not have to liove with you in your home;
or
2. You paid over half the cost of keeping up a home in which you
lived and in which one of the following also lived for more than half
of the year (exception to half covers school, vavcation and medical
absences, nothing else).
your _unmarried_ (or married as long as they are also your dependent)
child, adopted child, grandchild, great-grandchild, etc., or
step-child. This (unmarried) child does not have to be your
dependent.
Dependency and Exemptions.
If your child is the result of a marriage and you are now separated or
divorced the custodial parent in the eyes of the IRS "is treated as
having provided over half of the child's total support if both parents
togather paid over half of the child's support". Anything else and
the custodial parent must sign Form 8332 agreeing not to claim the
child's exemption. And you must attach the original form to your tax
return. If your divorce decree was entered prior to 1985 there may
have been a clause in the decree that gives you as the non-custodial
parent the right to claim the child as a dependent.
I hope this helps
Cait
bob c
>Jeannie Williams <jean...@optegen.ultranet.com> wrote:
>>ko...@fozzie.nrl.navy.mil (Ronald Kolbe) wrote:
>>>Hi people,
>>>
>>> I have a tax question. In reading the tax guides and forms, it
>>>looks like the NCP who is paying child-support could file as a head of
>>>household. True, the NCP can not claim the deduction, but the writeup
>>>appears to state that if you are paying half or more-than half of a person's
>>>support you are a head-of-household. This move you into a lower tax rate.
>>>Am I reading this right?
>>>--
>>>Ron Kolbe
>>>
>>> ko...@lcp.nrl.navy.mil
>>I believe that to file as head of household, the dependent child must
>>also live with you for the majority of the year (or is it the last 6 - 8
>>months of the year). However, even if the CP filed as head of household,
>>the NCP parent *can* claim the kid as a *deduction* , even if the kid
>>does not live with them for the majority of the year, as long as the NCP
>>has a written agreement to this effect from the CP.
>>But double check with a CPA, which I am not.
>>-jeannie
As a rule, the NCP cannot file as head of household. To file as HOH, you must have paid
over half the cost of maintaining a home in which you AND the child lived for more than 6
months, (which would make you the CP). You must live with the child to claim HOH.
Claiming the child as a dependent is an entirely different matter. A NCP can claim the
child as a dependent (no matter what filing status is used) as long as the CP signs Form
8332, which states that the CP agrees not to claim the child. This form must be attached
to your 1040 when mailed in. If your filing electronically you must attach it to your Form
8453. It's also a good idea to make a copy of it and attach it to your State return also.
A CP who signs Form 8332 agreeing not to claim the child as a dependent CAN still file as
HOH (which is much more beneficial than filing as single), as long as the CP provided over
1/2 the cost of maintaing the home for that child. The IRS (which I think stands for: It
Really Sucks), also has special rules for children supported by 2 or more taxpayers and
various other quandaries, predicaments and dilemmas. If you have the Form 1040 booklet,
read pages 12 & 13 for more detailed info.
bob
Conway's Tax Service
New Bedford, Ma.
E-Mail:bob...@ultranet.com
Ronnie Owens
OK, suppose you have joint custody *and* a 50/50 parenting schedule.
Technically, if it's really 50/50, *neither* parent has the kids for more
than 6 months. Also suppose you do a split custody, one parent has custody
of one kid and the other parent has custody of a second kid. Seems both
could claim it then, yes?
Ronnie
bob c
>OK, suppose you have joint custody *and* a 50/50 parenting schedule.
>Technically, if it's really 50/50, *neither* parent has the kids for more
>than 6 months. Also suppose you do a split custody, one parent has custody
>of one kid and the other parent has custody of a second kid. Seems both
>could claim it then, yes?
> Ronnie
You're testing me aintcha? Both can claim HOH in that situation-split custody.
All other things being equal, then simply 'split' the exemptions, one child for
each parent.