Chapter 3: Fundamentals of Income Tax

01.Core Concepts

• Unmarried as of end of year or an abandoned spouse. • Must pay more than ½ the cost of maintaining a household for a dependent relative for more than ½ the tax year. • While a “dependent relative” may be someone unrelated to the taxpayer for purposes of determining dependency deductions, head of household status cannot be claimed if the taxpayers only dependents are those who are unrelated by blood or marriage. Exceptions: • Maintain a separate house for parents if at least one parent qualifies as a dependent.