FILING STATUS AND TAX DEDUCTIONS

[Crawford, Dave]

Hi All,

I have a client who lost her husband in 2021 and has a 22 year-old daughter who she supports and lived with her or at college all of 2023.  Unfortunately, she graduated in April, so she wasn't a full-time student for 5 months and doesn't qualify as a dependent child.  I was considering filing her as HOH, but her daughter made over $6000 gross income during 2023, so doesn't appear to be a qualifying relative..  Unless I've missed something it appears that my client will have to file as Single and won't be able to claim her daughter's college expenses.  Have I missed anything?

Thanks for your input.

Grace, health, joy and peace,

Dave

[Lee Reams]

Based on the information provided, it appears that your client may not qualify for Head of Household (HOH) status or be able to claim her daughter as a dependent. Here’s a breakdown of the key points:

1. Dependency Status:

   • Qualifying Child: To be a qualifying child, the daughter must be under 24 and a full-time student for at least five months of the year. Since she graduated in April, she does not meet the full-time student requirement for five months in 2023.
   • Qualifying Relative: To be a qualifying relative, the daughter must have gross income less than $4,400 (for 2023). Since she made over $6,000, she does not meet this requirement.

2. Filing Status:

   • Head of Household: To file as HOH, your client must have a qualifying person. Since her daughter does not qualify as either a qualifying child or a qualifying relative, your client cannot file as HOH.
   • Single: Without a qualifying person, your client will need to file as Single.

3. Education Credits:

   • Since your client cannot claim her daughter as a dependent, she will not be able to claim education credits for her daughter's college expenses.

Given these points, it seems that your client will indeed need to file as Single and will not be able to claim her daughter's college expenses. 

On Jul 17, 2024, at 11:42 AM, 'Crawford, Dave' via ClientWhysConnect <clientwh...@googlegroups.com> wrote:

I have a client who lost her husband in 2021 and has a 22 year-old daughter who she supports and lived with her or at college all of 2023.  Unfortunately, she graduated in April, so she wasn't a full-time student for 5 months and doesn't qualify as a dependent child.  I was considering filing her as HOH, but her daughter made over $6000 gross income during 2023, so doesn't appear to be a qualifying relative..  Unless I've missed something it appears that my client will have to file as Single and won't be able to claim her daughter's college expenses.  Have I missed anything?

 

	Lee Reams Sr., BSME, EA Chief Content Officer CountingWorks Pro | CountingWorks | TaxBuzz | TaxCPE p: 1.800.442.2477 x240 w: www.countingworkspro.com/  e: lee....@countingworks.com
See how CountingWorks can grow your practice.

 

[Roger Mies]

Depending on the daughter’s income, she, the daughter maybe able to claim the educational expenses.   

Sent from my iPhone

On Jul 17, 2024, at 11:50 AM, Lee Reams <lee....@clientwhys.com> wrote:



Based on the information provided, it appears that your client may not qualify for Head of Household (HOH) status or be able to claim her daughter as a dependent. Here’s a breakdown of the key points:

1. Dependency Status:

   • Qualifying Child: To be a qualifying child, the daughter must be under 24 and a full-time student for at least five months of the year. Since she graduated in April, she does not meet the full-time student requirement for five months in 2023.
   • Qualifying Relative: To be a qualifying relative, the daughter must have gross income less than $4,400 (for 2023). Since she made over $6,000, she does not meet this requirement.

2. Filing Status:

   • Head of Household: To file as HOH, your client must have a qualifying person. Since her daughter does not qualify as either a qualifying child or a qualifying relative, your client cannot file as HOH.
   • Single: Without a qualifying person, your client will need to file as Single.

3. Education Credits:

   • Since your client cannot claim her daughter as a dependent, she will not be able to claim education credits for her daughter's college expenses.

Given these points, it seems that your client will indeed need to file as Single and will not be able to claim her daughter's college expenses. 

On Jul 17, 2024, at 11:42 AM, 'Crawford, Dave' via ClientWhysConnect <clientwh...@googlegroups.com> wrote:

I have a client who lost her husband in 2021 and has a 22 year-old daughter who she supports and lived with her or at college all of 2023.  Unfortunately, she graduated in April, so she wasn't a full-time student for 5 months and doesn't qualify as a dependent child.  I was considering filing her as HOH, but her daughter made over $6000 gross income during 2023, so doesn't appear to be a qualifying relative..  Unless I've missed something it appears that my client will have to file as Single and won't be able to claim her daughter's college expenses.  Have I missed anything?

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	Lee Reams Sr., BSME, EA Chief Content Officer CountingWorks Pro | CountingWorks | TaxBuzz | TaxCPE p: 1.800.442.2477 x240 w: www.countingworkspro.com/  e: lee....@countingworks.com
See how CountingWorks can grow your practice.

 

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[Crawford, Dave]

Thanks, Lee.  I'm sorry that your conclusion is the same as mine, but appreciate your timely response.  Sometimes carefully following the tax law really hurts, but it's the only honest way to practice.

Grace, health, joy and peace,

Dave

[Crawford, Dave]

Thanks, Roger.  Unfortunately, the daughter didn't owe any tax and didn't have any refundable expenses.

Grace, health, joy and peace,

Dave

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