Some Head of Household rules can make your head spin. People often get confused when trying to figure out if they qualify for the preferable "head of household classification".
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Unmarried persons who provide a home for Qualifying person(s) may file as head of household. This classification entitles the person to a lower rate than single individuals or married individuals filing separate. They also get a higher standard deduction. So when you qualify for this you want to make sure this is the "type" of taxpayer you check off on page 1 of form 1040. The I.R.S. recently reported on their website the following:
Filing Requirements/Status/Dependents/Exemptions: Filing Status
If I moved out of my house on July 10, but was not divorced at the end of the year, can I file as head of household and take the earned income credit if I have a minor child? Can I also claim child care expenses?
You do not qualify for the head of household filing status because you and your spouse have not lived apart for the last 6 months of the taxable year and are not considered unmarried. Your filing status for the year will either be married filing separately, or married filing jointly. If it is married filing separately, you will not qualify for the Earned Income Credit and cannot claim a credit based on child care expenses. If you file a joint return with your spouse, you may be eligible to claim these credits. See Publication 503, Child and Dependent Care Expenses and Publication 596, Earned Income Credit.
IRS References:
·Tax Topic 353, What is Your Filing Status?
·Publication 501, Exemptions, Standard Deduction, and Filing Information
·Publication 503, Child and Dependent Care Expenses
·Publication 596, Earned Income Credit
If the parents of a year old child never married but live together with the child for the tax year, and both contribute to the cost of maintaining the household for the child and themselves, may they both file as head of household?
Only one taxpayer may claim the child as a qualifying child for purposes of filing as head of household. Also, a taxpayer filing as head of household must furnish over half the cost of maintaining the household. Therefore, both parents may not file as head of household. For more information, please refer to Publication 501, Exemptions, Standard Deduction, and Filing Information, for more information.
A taxpayer may file as head of household only if ALL of the following requirements are met:
·The individual is a U.S. citizen or resident for the entire year
·The individual is unmarried
·The individual paid more than half the cost of keeping up his/her home
·A qualified person lived with the taxpayer in his/her home for more than half the yr. Exception- the qualified person is T.P.'s parent, the living provision is not necessary but more than ½ the cost of the parent's main home must be paid for by the T.P.
A Qualified Person - for Head of Household purposes is:
·Any qualifying child if the child is;
1) single, even if the T.P. can or can't claim them as an exemption
2) the child is married and the T.P. can claim them as an exemption
·The parent for whom he or she can claim an exemption or
·Any qualified relative of the T.P.
I found a great definition for the word streamline: to make simpler or more efficient. I love the idea of a simpler, more efficient household. Frequently what takes up a lot of our time is doing the same small, unnecessary tasks over and over again.
Here are five suggestions on ways to streamline the flow of your household and help you save precious time and energy:
o The upstairs/downstairs basket system
Do you find yourself constantly going up the stairs to bring stuff up or because you forget to bring stuff down? Try putting a basket at the top and the bottom of the stairs and every time you find something that needs to go up or down, just put it in the basket and make one trip when the basket is full. This strategy can work even if you don't have a two-story home. For example, if you have a long hallway that feeds off into several rooms, you could still use the basket system.
o Incoming mail system
If you're losing the battle against the mail that keeps piling up, you might want to try this mail system. First, find a basket for incoming mail but don't stop there. Instead, put a recycling bin and a shredder right next to it. That way, when you bring the mail in, junk mail immediately gets thrown away or shredded and you're left with the mail you really need.
o Create work stations
Instead of running back and forth to get everything in one spot to do a job, try creating some work stations. While each family has different needs, most people could utilize stations under the kitchen sink, in each bathroom and in the laundry room. You should have all of your cleaning or work supplies in each of these stations to save you from all that back and forth. One of my favorites is the portable diaper station! Instead of bringing my baby to his room every time he needs a change, I keep everything I need in the living room so I can change him right there.
o Keep things within reach
Reduce the number of steps it takes to access something that you use on a regular basis. This is especially helpful in the kitchen. Maybe it's time to rearrange the pantry to keep the items you use daily within reach. If you use your toaster every morning, try leaving it out on the counter so you don't have to take it out of the cabinet each time.
o Consult a professional organizer
If you feel like you're stuck it may be worthwhile to consult with a professional organizer. After just a few hours they can help you set-up on systems that will make your life simpler and more electronic efficient. Some popular areas for organization include: closets, photos, storage/garage, home office, filing systems, mail and office setup.
Some of these suggestions seem fairly insignificant but those few minutes saved can really add up by the end of the day. By streamlining the flow of your household you're basically eliminating all the unnecessary steps from everyday tasks. Reorganizing not only saves time, but also money and stress while increasing your productivity!