01 Dec Mom lives with me. Should I file taxes as head of household?

Q. I’m single and my 97-year-old mom moved in with me when COVID hit. Since then, we’ve sold her home and she contributes about $300 a month to the food and cable bills. Should I declare myself as single or head of household on my taxes? What are the advantages or disadvantages? Should I be charging her rent and more towards room and board?
— Taxpayer

A. There are a few things to consider here.

Let’s start with your filing status.

To be eligible to file as head of household, you must be single, have a “qualifying person” and you must be paying more than half of the cost of keeping up a home for the year, said Michael Maye, a certified financial planner and certified public accountant with MJM Financial in Gillette.

“Your mom is a qualifying relative, however, for you to be able to file as head of household, you also need to be able to claim her as a dependent on your income tax return,” Maye said. “Your ability to claim your mom as dependent on your tax return would make her a `qualifying person’ for you filing as head of household.

Assuming she is your dependent, you can use IRS Publication 501 Worksheet 1 to determine whether you also meet the cost of upkeep, meaning you’re paying greater than 50% of the cost of maintaining the home, he said.

“Interestingly, with a parent, even if they don’t live with you, you can still file as head of household assuming you meet the other requirements if you provide greater than 50% of the cost of their main residence,” he said.

The main benefit of filing as head of household is an enhanced standard deduction — for 2022, it’s $19,400 for head of household versus $12,950 for a single — assuming you are not itemizing deductions, Maye said.

It would make sense to work with a qualified tax professional who can assess your situation to make sure your mom qualifies as a dependent for tax purposes and you really are eligible to file as head of household.

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This story was originally published on Dec. 1, 2022.

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