2011 Regulation 1 Text Update - This first page gives a...

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This first page gives a listing of the corrected lecture text pages that follow. Print these corrected pages and insert in the lecture text. REGULATION Date Added Lecture Page Number Description 03/14/2011 R-1 9 Text change; Add text 03/14/2011 R-1 10 Changed number from $3,750 to $3,700 03/14/2011 R-1 13 Add text 03/14/2011 R-1 23 Delete text 03/14/2011 R-1 24 Renumber outline; Add text 03/14/2011 R-1 28 Add text 03/14/2011 R-1 29 Add text 03/14/2011 R-1 54 Delete text 03/14/2011 R-1 55 Renumber outline
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Becker Professional Education | CPA Exam Review Regulation 1 © 2010 DeVry/Becker Educational Development Corp. All rights reserved. R1- 9 E. Head of Household Head of household status entitles certain taxpayers to pay lower taxes. The lower tax results from a larger standard deduction and "wider" tax brackets. To qualify, the following conditions must be met: 1. The individual is not married, is legally separated, or is married and has lived apart from his/her spouse for the last six months of the year as of the close of the taxable year. 2. The individual is not a "qualifying widow(er)." 3. The individual is not a nonresident alien. 4. The individual maintains as his or her home a household that, for more than half the taxable year, is the principal residence of: a. A Dependent Son or Daughter (or descendent) (1) Legally adopted children, stepchildren, and descendents qualify as sons and daughters. (2) Working Families Act: The definition of head-of-household conforms with the uniform definition of a child. To qualify for head-of-household status, the child must either be a qualifying child or qualify as the taxpayer's qualifying relative. (3) Divorced Parents : Assuming all other requirements are met, a custodial parent is entitled to the head of household status even if the custodial parent has waived the right to the dependency exemption by completing a Form 8332. b. Father or Mother (not required to live with taxpayer) A dependent parent is not required to live with the taxpayer, provided the taxpayer maintains a home that was the principal residence of the parent for the entire year. Maintaining a home means contributing over half the cost of upkeep. This means rent, mortgage interest, property taxes, insurance, utility charges, repairs, and food consumed in the home. c. Dependent Relatives (must live with taxpayer) Parents, grandparents, brothers, sisters, aunts, uncles, nephews, and nieces (as well as stepparents, parents-in-law, etc.) qualify as relatives. A dependent relative (other than a father or mother) must live with the taxpayer. Note that cousins, foster parents, and unrelated dependents do not qualify. 5. Summary Dependent Lives with Taxpayer Child or Descendent Yes Yes Parents Yes No Relative Yes Yes PASS KEY In order to avoid confusing the required time period for different filing statuses, just remember: W idow/widower = W hole year H ead of household = H alf a year (more than)
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Regulation 1 Becker Professional Education |
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2011 Regulation 1 Text Update - This first page gives a...

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