Does that mean that my 79 year old client whose 55 year old
daughter still lives at home and sort of works on her magnum
opus/doctoral dissertation, can continue to file as HOH or
not? The daughter is, of course, a dependent.

Linda Dorfmont E.A., CFP, CSA

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I'm reading the "Tax Relief Act" as quoted. Uniform
Definition of Qualifying Child leaves me confused about
single parents of an adult, non-dependent child who lives
with them. For the last 20 years or more I've used adult
children to qualify single parents as head of household.
Assume the other rules are met of course. Reading the
reference, everything is fine except that, for "qualifying
child" children over 18 will not be considered.

"Under the new law, a taxpayer is eligible for Head of
household ....with a qualifying child or a dependent child"
And we're right back to the "qualifying child" definition,
i.e., under 18.

What am I missing - PLEASE.

Nan, EA in LA
Stress is what happens when your gut says "NO" and your
mouth says "YES I'D BE GLAD TO".

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David Woods, EA, ChFC, CLU wrote:

- quote -

You are correct. Previously, any unmarried child of any age
could meet the test without being your dependent. In 2005,
the QC (expanded to include siblings and their linear
descendants) has to meet the age test unless disabled.

--
Alan
http://taxtopics.net

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"A.G. Kalman" <glendale202-mtm[at]yahoo.com> wrote:
- quote -

I agree it should make it easier, but I point out that one
COULD qualify previously for HoH with a non-dependent child
living in the home.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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"A.G. Kalman" <glendale202-mtm[at]yahoo.com> writes:
- quote -

= Alan, when I read the rules, my mind was on "qualifying
child" as the child of separated/divorced parents to the
exclusion of ALL others. The children I had in mind were
those in their 20's, 30's, 40's, 50's, etc whom I,
initially, thought would be excluded. That's not the
case!!! Parents, who have older children may still qualify,
if they meet the other tests!!=

Sorry 'bout that!!! BUT, at the same time, somewhat
relieved!!=

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

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John H. Fisher wrote:
- quote -

You've got me stumped. If anything, the new law makes its
easier for someone to file as HOH. E.g., a qualifying child
(does not have to be your dependent) includes siblings and
their offspring.

Prior law required they be your dependent. The new law
allows use of the old law rules relating to someone who is
your dependent. Foster children no longer have to meet the
full year residence rule nor do they have to be your
dependent. The definition of unmarried remains unchanged.
Temporary absences from the residence are allowed. The
exception for parents who do not reside with you still
exists.

I haven't thought this out completely as yet. However, who
of your clients would lose the ability to claim HOH?

--
Alan
http://taxtopics.net

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"Barney Byrd" <Barney_Byrd[at]fictitious.org> writes:

- quote -

I find this rather troubling. It will require changing
scores of my client's filing status:

Under the new law, a taxpayer is eligible for head of
household filing status only with respect to a qualifying
child or an individual for whom the taxpayer is entitled to
a dependency exemption. Under the new law a taxpayer may
claim head of household filing status if the taxpayer is
unmarried (and not a surviving spouse) and pays more than
one half of the cost of maintaining as his or her home a
household which is the principal place of abode for more
than one half the year of (1) a qualifying child, or (2) an
individual for whom the taxpayer may claim a dependency
exemption. As under present law, a taxpayer may claim head
of household status with respect to a parent for whom the
taxpayer may claim a dependency exemption and who does not
live with the taxpayer, if certain requirements are
satisfied.

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

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"A.G. Kalman" <glendale202-mtm[at]yahoo.com> wrote:

- quote -

The Small Biz website has a good synopsis.

http://www.smbiz.com/sbspec81.html

Barney Byrd

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HR 1308 will become law when Pres. Bush signs it. Besides
extending certain expiring provisions, the bill also
contains changes to an area of tax law that generates a lot
of questions on this newsgroup during tax season.
Specifically, it modifies the definition of a qualifying
child or relative for purposes of the dependency exemption,
Child Tax Credit, Earned Income Credit, Dependent Care
Credit and Head of Household filing status.

The best document I have found that explains these changes
is the Conference Committee Joint Explanatory Statement.

As "Thomas" does not have HR1308 details as yet, you can
find links to the Joint Explanatory Statement, final
legislative text and other documents at:
http://waysandmeans.house.gov/Links.asp?section=343

--
Alan
http://taxtopics.net

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