As long as income is under (Was $4300 may be a little higher this year), and he provides more than 50% support, lived with him over 6 months, and can claim him as a dependent ( if he can claim him why would he not want to ?) Sounds like he can file as HH if he did not live with spouse in last 6 months of year. You should research pub 501 for yourself, as you are aware of all the details ( the devil is in the details 😁)

Here is link. https://www.irs.gov/publications/p501

T

TaxGuyBill

Level 15

@470pitt wrote:

He does not want to claim him as a dependent he is over 24 but lives with him

If the son qualifies as a dependent, why does your client not want to claim him?

As Jim mentioned, income for determining if the son is a dependent or not is based on "gross income", which means line 7 of Schedule C, not the profit of Schedule C.

You didn't actually ask a question, so I'm not sure what you are asking. If you are asking if the son is a qualifying person to qualify the father for Head of Household, look at the chart on page 10 of Publication 501.

https://www.irs.gov/pub/irs-pdf/p501.pdf#page=10

Jim-from-Ohio

Intuit Community Champion

@TaxGuyBill Bill, on the gross vs net test on a Schedule C, Publication 17 talks about gross income (plus miscellaneous income) for manufacturing businsses.. it is silent on non-manufacturing businesses, say a service company.. do you think the gross income test applies the same way to a service business? thanks.. here is part of Publication 17:

Gross income defined. Gross income is all income in the form of money, property, and services that isn't exempt from tax. In a manufacturing, merchandising, or mining business, gross income is the total net sales minus the cost of goods sold, plus any miscellaneous income from the business.

Gross receipts from rental property are gross income. Don’t deduct taxes, repairs, or other expenses to determine the gross income from rental property Gross income includes a partner's share of the gross (not a share of the net) partnership income.

Pub 17 goes on from there discussing other sources of income but I have included the pertinent section above.

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TaxGuyBill

Level 15

Yes, I think it applies to a service business as well.

§61(a)(2) says "gross income derived from business", and the box on page six of Publication 17 (and page two of Publication 501) says "Gross income from a business means, for example, the amount on Schedule C, line 7; or Schedule F, line 9."

I think the mention of the manufacturing business was to clarify that COGS reduces "gross income", but not other expenses.

4

470pittAuthor

Level 4

I am meaning on line 4 of the 1040 can he claim hoh but not use him as a dependent as he

provided all living expenses

Jim-from-Ohio

Intuit Community Champion

Child has to be a dependent to qualify taxpayer as HOH.

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