1 NY3 Instructor Training Albany 2009 Review2 Head of Household Pub 17

2 NY3 Instructor Training Albany 2009 Head of Household Filing Status Unmarried or “considered unmarried” Pay >1/2 cost of keeping up a home A “qualifying person” lived with you >1/2 the year: exception - parent

3 NY3 Instructor Training Albany 2009 “Considered Unmarried” You file a separate return Pay >1/2 cost of keeping up home Spouse did not live with you last 6 mos Home of child, step, or foster >1/2 year Claim child as exemption unless spouse claims child with 8332

4 NY3 Instructor Training Albany 2009 Qualifying Child/Relative Qualifying Child 1.Relationship 2.Age 3.Residency 4.Support 5.Test for qualifying child of more than 1 person Qualifying Relative 1.Not a qualifying child 2.Member of household or relationship test 3.Gross Income 4.Support Test

5 NY3 Instructor Training Albany 2009 Qualifying Child Relationship  Son or daughter  Stepchild or foster child  DESCENDANT of above  Brother or Sister  Half brother/sister  Step brother/sister  DESCENDANT of above

6 NY3 Instructor Training Albany 2009 Qualifying Child AGE Test  UNDER 19  UNDER 24 & full time student *  Permanently & totally disabled regardless of age * Full time student during some part of any 5 months during yr

7 NY3 Instructor Training Albany 2009 Qualifying Child Residency Test  Must live with tax payer more than ½ year  Temporary absence counts as time lived with tax payer  School  Military  Business  Vacation  Illiness  Special consideration for child of divorced or separated parents Pub 17 chapter 3

8 NY3 Instructor Training Albany 2009 Qualifying Child Support Test  Child cannot have provided >1/2 own support  Support includes  Household Expense  Personal Expense  Scholarship received not considered  Use worksheet when necessary

9 NY3 Instructor Training Albany 2009 Qualifying Child Qualifying child of more than 1 person  Tax payer and other person can decide who takes tax benefits. A LOT AT STAKE!  Exemption for child  Child tax credit  Head of Household filing status  Credit for Child and Dependent Care expenses  Exclusion from income for dependent care benefits  Earned Income Credit w/child

10 NY3 Instructor Training Albany 2009 Qualifying Child MORE THAN 1 PERSON FILES CLAIMING CHILD WILL BE TREATED AS QUALIFYING CHILD OF: Only 1 person is parent Parent Both parents not MFJ Parent with whom child lived more Both parents, not MFJ, lived with both same amount of time Parent with higher AGI Neither person is parent Person with highest AGI

11 NY3 Instructor Training Albany 2009 Qualifying Child/Relative Qualifying Child 1.Relationship 2.Age 3.Residency 4.Support 5.Test for qualifying child of more than 1 person Qualifying Relative 1.Not a qualifying child 2.Member of household or relationship test 3.Gross Income 4.Support Test

12 NY3 Instructor Training Albany 2009 Qualifying Relative  Not a qualifying child  Of you  Of someone else

13 NY3 Instructor Training Albany 2009 Qualifying Relative  Member of household or relationship test  Live with you ALL year OR  Relative  Child, stepchild, foster child or DESCENDENT  Brother, sister, half brother or sister, step-B or S  Parent, grandparent, or other DIRECT ANCESTOR  Step father or mother  Son or daughter of brother or sister  Brother or sister of your father or mother  Son or daughter-in-law, father or mother-in-law, brother or sister-in-law

14 NY3 Instructor Training Albany 2009 Qualifying Relative  Income Test  Gross income < $3,650  Support Test  You must provide > half person's support

15 NY3 Instructor Training Albany Qualilfying Child Changes The child must be younger than you ·A child cannot be your qualifying child if he or she files a joint return, unless the return was filed only as a claim for refund ·If the parents of a child can claim the child as a qualifying child but no parent does, no one else can claim the child as a qualifying child unless that person's AGI is higher than the highest AGI of any parent of the child ·To be a qualifying child for child tax credit in 2009, the child must be claimed as taxpayer's dependent