Head of Household Filing Status

In real life situations, filing status is pretty straightforward.  For example, you have a married couple in front of you, they get along well, and want to file together.  Of course, married filing jointly.  Or you have a 25 year old client, never married, has no children, and does not provide financial help for anyone else.  Again, simple enough to choose single as the filing status.  Unfortunately, in a test environment, it is hardly ever that simple. 

The filing status most ripe for the test makers is head of household.  As you preparer for the exam, focus on this filing status.  Some of the main points.

• Qualifying Person.  Can be a qualifying child (even if dependent exemption is claimed by the other parent because of divorce or separation rules) or a qualifying person (not if relative due to member of household test).
• Parents.  Must be a qualifying person, but does not have to live with the taxpayer.
• Lived with taxpayer.  For head of household, this is over half the year.  Don't get confused with qualifying widow(er) rules which require a full year.  Also, not to be confused with married but unmarried for tax purposes which require the spouse to be out of the house the last six months (July 1 onward to the end of the year.
• Paid over half the cost of keeping up the home.  This is a short, and by and large a specific list of costs related specifically to the home (also food consumed in the home).  Costs for someone's support are much more wide ranging.