How does he qualify for HOH

Has 2 dependents which is his sister and nephew he pays for everything

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How does he qualify for HOH

Yes if he meets all conditions to file as Head of Household:

Pay for more than half of the household expenses
Be considered unmarried on the last day of the tax year, and
You must have a qualifying child or dependent.

The sister and nephew can be qualifying dependents.

Please read this TurboTax article for more information.

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