Can I claim Head of Household if an adult child lives with me in my home and does not pay rent?

[bobdrad]

My adult child lived with me in the home that I own all year.  They do not pay rent, but they do have a job.

Is it possible for me to claim Head of Household? Would I have to declare them as dependents? I understand that requires me to pay more than "half of their living expenses" but it's hard to pin down what constitutes living expenses beyond food and rent, and since they don't pay me rent, how is that accounted for?

What would the tax impact on my child be if I declared them as dependents?

[DoninGA · Accepted solution]

If the adult child has gross income of $4,700 or more in 2023 then you cannot claim them as a dependent and would not be eligible for Head of Household filing status.

If you are referring to tax year 2022 the gross income test is less than $4,400 to claim an adult child as a dependent under the Qualifying Relative rules.

To be a Qualifying Relative -

1. The person cannot be your qualifying child or the qualifying child of any other taxpayer. A child is not the qualifying child of any other taxpayer if the child's parent (or any other person for whom the child is defined as a qualifying child) is not required to file an income tax return or files an income tax return only to get a refund on income tax withheld.
2. The person either (a) must be related to you or (b) must live with you all year as a member of your household.
3. The person's gross income for the year must be less than $4,400 (social security does not count) in 2022
4. You must provide more than half of the person's total support for the year.
5. The person must be a U.S. citizen or a U.S., Canada, or Mexico resident for some part of the year.
6. The person must not file a joint return with their spouse.

See this IRS website for calculating support - https://apps.irs.gov/app/vita/content/globalmedia/teacher/worksheet_for_determining_support_4012.pdf

[Opus 17]

Head of household requires that you claim your child as a dependent, and that they live in your home more than half the year.  If they are 19 or older and not a full time student, you can't claim them as a dependent if they have more than $4700 of taxable income (from any source), and if you can't claim them as a dependent, they don't qualify you to claim head of household.

There is one slight exception: if your child is permanently disabled and unable to perform gainful work, they can be your dependent even if their income is more than $4700.  However, being able to work at a minimum wage job is usually considered proof that a person is able to perform gainful work and therefore not considered disabled for tax purposes. (A person can have a medical disability, but if they can work, they aren't disabled for income tax purposes.)  The exception is that income earned in a sheltered workshop (like rehab or occupational therapy) doesn't count against them being considered disabled.  In the unlikely situation where your child is disabled and unable to perform gainful employment, but has some income from a sheltered workshop, you might still be able to claim them as a dependent even though they are over 19 and have a small job. 

[Hal_Al]

Q. Is it possible for me to claim Head of Household? 

A. No.  Head of household requires that you claim a related person as a dependent.  Since he has a job (and is apparently not a full time student under 24), he probably does not qualify as your dependent.

Q. Would I have to declare them as dependents? 

A. Yes.