For several years, Chester, a widower, has maintained ahousehold in which he and
ID: 2458052 • Letter: F
Question
For several years, Chester, a widower, has maintained ahousehold in which he and his aunt, Heloise, live. As theaunt has no income, Chester claims her as his dependent. In earlyJune 2004, Heloise is admitted to a medical facility for treatmentof a mental disorder. In January 2005, Heloise unexpectedlydies while still in the facility.
In completing his Federal income tax return for both 2004 and2005, Chester intends to file as head of household and to claimHeloise as his dependent. Comment on the propriety of what Chesterplans to do.
Explanation / Answer
Chester can file as head of household & claim Heloise as hisdependent only for 2004 & not for 2005 .
According to Federal tax law ,
“you may be eligible to file as head of household if theindividual who qualifies you for this filing status is bornor dies during the year . You must have provided more than half ofthe cost of keeping up a home that was the individual’s mainhome for more than half of the year or , if less , the periodduring which the individual lived .”
Heloise died in Jan ,2005 .
So there is no question of “ ………individuals main home for more than half of the year…………………….. whichthe individuals lived .”