Filing Status War Zone
Married couple lives apart since July.
Child lives with Mom the entire year.
Mom earns $18,000. Dad earns $82,000.
Mom paid 40% household costs.
What filing status for Mom?
Single (NOT HOH)
Does a stepchild automatically meet the relationship test?
YES — always for QC or QR.
Which credit can be partially refundable?
AOTC (40%)
Unemployment...
Taxable or no?
Taxable
Business gifts deduction max?
$25 per recipient.
Spouses separated but not legally.
Child lived with Dad 8 months.
Dad moved out in April to a separate household.
Can Dad claim HOH under “considered unmarried”?
YES (meets 6-month separation rule + QC in home)
Nephew lived with taxpayer 10 months.
Made $6,200.
Taxpayer paid all support.
Dependent?
NO — gross income too high; not QC.
Client was denied EITC in 2021.
Wants to claim again in 2024.
What must be attached?
8862
HSA contributions are only allowed when?
Only allowed if covered by HDHP
Can you take mileage AND actual expenses?
No. Must pick one (with exceptions like parking/tolls)
Widow lost spouse in 2022, has a 6-year-old.
What filing status in 2024?
Qualifying Surviving Spouse
Child lived with both parents equally (182/183 days).
Both eligible.
Who wins tie-breaker?
Higher AGI parent.
Can a taxpayer claim both AOTC and LLC for SAME student in SAME year?
NO. Pick one.
1099-B missing cost basis? Let's guess it!
Must obtain actual basis. Cannot estimate.
Uber driver: When is home-to-first-ride commute deductible?
Never. Commute is not deductible.
Unmarried couple, one biological parent.
Child lived exactly 6 months with each.
Who can claim HOH?
NEITHER — must be >6 months
Taxpayer supported elderly parent all year, parent lived alone.
Can parent be dependent?
YES — QR does NOT require co-residency for parents.
What reduces refundable CTC?
Earned income, age, residency, phaseouts.
Tax-exempt interest may still affect…
MAGI + ACA eligibility
Depreciation recapture triggers when?
Sale/disposal of depreciated asset
Married couple living together all year.
One spouse wants to file HOH alone.
Is this ever legal?
NO. Never. Not once. Not under any circumstances.
College student earned $8,900 and pays 47% of own support.
Parents pay 53%.
Dependent?
YES — QC (student <24)
Claiming AOTC with no 1098-T — legal or not?
Legal ONLY with proof of qualified education expenses
(May use transcripts, receipts, billing statements)
Crypto received via staking?
Taxable at FMV on receipt.
Can a Schedule C loss increase EITC?
No — IRS considers this abusive (anti-abuse rule)