Support Test for determining HOH status

[deuce1313]

I am preparing a Tax Return for a Single Mother who works at a Bank and received a 2019 W-2 from her job for $34k. She lives with her daughter who is 22 years old and a FT student. The daughter had a part-time job for 2019 where she received a W-2 for $19k. She received a 1098-T from the College she attended showing scholarships and grants of $4k greater than the tuition paid for 2019. The mother lives in an apartment with her daughter and paid all of the applicable household expenses (rent, utilities, food, etc.) for 2019 totaling about $22,500 . Is there any way that the Mother can claim HOH status for 2019?

[KatrinaB48]

Yes, the mother has provided more than half of the household expenses during 2019. The qualifying expenses for claiming head of household are the expenses related to running the home. Educational expenses are not included when determining head of household eligibility. Scholarship income is also not included when determining if a child qualifies as a dependent. Please view this TurboTax FAQ for more information about the qualifications for claiming head of household.

[deuce1313]

Thank you Katrina. It  just seems a little odd that the Mother can claim HOH since the daughter made so much on her W-2.  What if the daughter had a W-2 for $34k (same as the Mother) and used all of the money for clothes and vacations- would the Mother still be able to claim HOH? 

[KatrinaB48]

Yes, there is no rule limiting the amount of income a child can have if he or she is under the age of 24 and a full-time student for at least five months of the year. Please view the Qualifying Child rules below.

Qualifying child

• They're related to you.
• They aren't claimed as a dependent by someone else.
• They're a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
• They aren’t filing a joint return with their spouse.
• They're under the age of 19 (or 24 for full-time students).
  • No age limit for permanently and totally disabled children.
• They lived with you for more than half the year (exceptions apply).
• They didn't provide more than half of their own support for the year. (What matters is how the child's money is spent)

Qualifying relative

• They don't have to be related to you (despite the name).
• They aren't claimed as a dependent by someone else.
• They're a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
• They aren’t filing a joint return with their spouse.
• They lived with you the entire year.
• They made less than $4,200 in 2019.
• You provided more than half of their financial support.