Can I file a Head of Household if I qualify AND the qualifying persons filing a Joint Return and take their standard deduction?

[RMD20201]

Hi,

I could really use some help on filing as Head of Household.

I have read the eligibility for Head of Household:

1. Were unmarried as of December 31, 2023 and
2. Paid more than half the cost to run your (or a qualifying parent's) home this year (rent, mortgage, utilities, etc.) and
3. Supported a qualifying person.

I have paid for more than half the cost to run my parents' home and have a qualifying persons (i.e. my parents).

a) I am assuming that I do not have to include my parents as my dependents, correct? This would mean that I would not claim any exemptions for them.

b) Can my parents file their joint tax return OR will we have 1 tax return for me and my parents all be rolled under the Head of Household?

c) If my parents can file their own joint tax return and are not claimed as dependents of anyone, will they be able to take the standard ($30,700) or itemized deduction?

d) The same would apply for the State taxes (Massachusetts)? Would my parents qualify for the Senior Circuit Breaker credit, for example? Or better question to ask is if I am Head of Household, what will my parents or I would be disqualified from in terms of deductions/credits?

e) Is there a limitation in my earnings in order to qualify or not qualify to be Head of Household?

f) Is there a limitation in my parents' total income or total taxable income, which consists of SSA, Interest earned, RMDs, and no W-2s, to qualify or not qualify as a "qualifying person"?

Thank you in advance for your help.

[xmasbaby0]

In order for you to claim your parents as dependents---they cannot have more than $4700 of income per person--not including Social Security.  If they have more than $4700 of income----and you mentioned retirement income from RMD's and interest-----you cannot claim them as dependents.  So you need to be clear on how much income each of them has.    Any income that is not from Social Security "counts."

IRS interview to help determine who can be claimed:

https://www.irs.gov/help/ita/who-can-i-claim-as-a-dependent

And....if you do not have a qualifying dependent you cannot file as Head of Household.

Am I Head of Household?

https://ttlc.intuit.com/questions/1894553-do-i-qualify-for-head-of-household

https://ttlc.intuit.com/questions/2900097-what-is-a-qualifying-person-for-head-of-household

If you qualify as Head of Household, when you enter your marital status (single or married filing separately) into MyInfo, and then enter your qualifying dependent, TurboTax will offer HOH as your filing status.

[Hal_Al]

It is highly unlikely that you qualify for Head of Household (HOH) in the circumstance you describe.

In order to claim a parent, that does not live with you, as you qualifying person for HOH, that parent must be claimed as your dependent.

The fact that you paid for more than half the cost to run your parents' home is not relevant to you being able to file as HOH. But, it does help for the support rule for being able to claim a dependent.

You can not claim a person as  a dependent, if that person files a joint return with their spouse UNLESS they are only filing to get a refund of withholding. 

[RMD20201]

Thank you, xmasbaby0

[RMD20201]

Hal_Al: Thank you!

[RMD20201]

I am just looking at the eligibility for elder care once again.

I filled out the ITA IRS form (https://www.irs.gov/help/ita/do-i-qualify-for-the-credit-for-the-elderly-or-disabled) and it seems like I would qualify for a maximum of $6K and would have to submit Form 2441, Child and Dependent Care Expenses. When I filled out the form, I answered for each parent with:

What tax year are you asking about? 2023

What is your filing status for 2023? Single

Did you pay or incur expenses to care for a person under age 13, or a person who was physically/mentally unable to care for himself/herself, in order to work or look for work? Yes

Of the expenses incurred to allow you to work or look for work, what portion did you incur for the care recipient(s) to attend kindergarten or a higher grade of school? None

What portion of the care, if any, was provided by one or more of the following:

• your dependent (or your spouse's dependent if you were married)
• your child who was under age 19 at the end of 2023
• a person who was your spouse at any time during 2023
• the parent of your qualifying person if your qualifying person is your child and under age 13

None

Did you prepay 2024 dependent care expenses in 2023? No

Did you pay dependent care expenses in 2023 but incur the expenses in a prior year? No

Were at least some of the expenses paid in 2023 or prepaid in a prior year? Yes

Did you have earned income during the tax year? Yes

First Name: Dad

First Name: Mom

What is Dad's relationship to you? Other

What is Dad's date of birth? MM/DD/YYYY

Was Dad a person who was physically or mentally unable to care for himself or herself? Yes

Are you claiming Dad as a dependent on your return? No

Did Dad live with you for more than half the year? Yes

Would Dad have been your dependent except that he or she is filing a joint return? Yes

Does Dad have a taxpayer identification number (SSN, ATIN or ITIN)? Yes

And repeated the same for Mom. 

Does this sound right to you or is there a loop hole that I am unaware of and should be cautious of?

Thank you!!

[Hal_Al]

You appear to be mixing up two separate credits.  

The credit for the elderly or disabled is for the elderly/disabled person to claim on his own return, not for the caretaker to claim.  

The dependent care credit is specifically to take care of someone, usually a child, while you  work.

These two items are separate subjects from the Head of Household question, originally posted. You should probably start a new thread to attract experts on those subjects.