Head of Household

[Katieniu]

My sister lives with me and is unemployed. I plan of filing head of household because I pay well over half of the household expenses. She did work for a few months at the beginning of the year but it was under the $4050. However, she did get unemployment until around September, when it ended. So my question is, does the amount she got in unemployment count towards that $4050? I can’t really find a clear answer anywhere. Her unemployment checks were very small, just enough to put gas in her car and a few groceries for herself.

Thanks!!

[Carl]

See https://ttlc.intuit.com/questions/1900992-do-i-have-to-pay-taxes-on-unemployment

Also, https://www.irs.gov/taxtopics/tc418

Finally, check out https://turbotax.intuit.com/tax-tips/family/guide-to-filing-taxes-as-head-of-household/L4Nx6DYu9

Based on my assumptions, so long as your sister is younger than you, I see no issues. But still read the above references in case one of my assumptions is wrong.

[AJ]

For tax year 2018, the threshold amount has been increased to $4150. Income should include all income, but it excludes exempt income such as Social Security. Unemployment income generally adds to the income total.    While being younger is a requirement to be a qualifying "child", being younger is not a requirement for a qualifying "relative".  So if  your sister meets the income and the other requirements for a qualifying relative, then Head of Household should be OK.