Head of household and dependents

itsybitsyspider · Post by **itsybitsyspider** » Thu Mar 01, 2012 8:44 am

Hello,
I'm a separated duel Canada/US citizen living in Canada. I have 2 children who I have sole custody of. I had no income since I am a stay at home mom until 2010 when my only income comes from alimony. If I file as head of household I am under the income amount for filing. If I file as single I am a few dollars over. Can I file as head of household and not claim my children as dependents therefore not requiring me to obtain their SSN? I'd rather not do that at this time. Also in the year 2009 I had just over 10,000 in a savings account so it seems need to backfile a FBAR, but do I also need to file a 1040 even tho my only income was about 40 dollars in interest only? Thanks

JGCA · Post by **JGCA** » Thu Mar 01, 2012 5:34 pm

To claim Head of Household the 3 main tests are
1) You were not married at the last day of teh year and your spouse did not love with you in the last 6 months of the year

2) Have qualified persons you CAN claim as dependents such as your children evn if you choose not to claim them they are still consudered as Qualified so it meets the test.

3) You contributed to more than half of the cost of the household.

So yes you can still clain Head of Household.

FBAR has to be filed seperately from your 1040 so even if you did not file a 1040 this still gets filed.

nelsona · Post by **nelsona** » Thu Mar 01, 2012 5:57 pm

...your spouse did not love with you in the last 6 months...

VERY FUNNY TYPO!!!!

JGCA · Post by **JGCA** » Thu Mar 01, 2012 7:13 pm

Your right, !! Sorry I meant live with you of course

itsybitsyspider · Post by **itsybitsyspider** » Thu Mar 01, 2012 7:53 pm

[quote="nelsona"]...your spouse did not love with you in the last 6 months...

VERY FUNNY TYPO!!!![/quote]

LOL boy now thats an invasive government!! he even has to not love me for the last 6 months! To funny!! On another note...FBAR

If I own some equities in Goldcorp...do I report them on the FBAR? It says this on their site:
"Is Goldcorp a Passive Foreign Investment Company for US taxpayers?

No, Goldcorp is not a Passive Foreign Investment Company for US taxpayers"

Or does that have no bearing and I should include it? I have some other US stocks and am fairly sure I don't need to report those right?

Sorry if this seems a bit dense but I'm not real bright when it comes to tax stuff...

nelsona · Post by **nelsona** » Thu Mar 01, 2012 8:08 pm

FBAR is for foreign ACCOUNTS. So, in as much as your shares are held at a brokerage, you need to report the existence (and max value during the year) af that accoint, regardless of the status of what is inside. The account is what matters.

The fact that it is not considered a PFIC is good for you in the sense that you avoaid having to report it (and pay yearl;y tax on it) on another form.

itsybitsyspider · Post by **itsybitsyspider** » Thu Mar 01, 2012 8:10 pm

Great!! I just want to be sure I'm reporting properly!!! Thanks so much!

itsybitsyspider · Post by **itsybitsyspider** » Fri Mar 02, 2012 9:47 pm

Should I file like 3 years of back 1040's even tho I don't need to just to prove I don't need to or should I just leave that alone and not bother..I will file the FBAR however... and I had no savings before 2009 so it would be just from then....

nelsona · Post by **nelsona** » Fri Mar 02, 2012 10:36 pm

Depends.
if you made income, you need to report, not simply if you owe taxes.

itsybitsyspider · Post by **itsybitsyspider** » Sat Mar 03, 2012 10:56 am

Ok thanks! I do not work, however in 2010 i began getting a small alimony so that I assume is income, the amount does not exceed my exemptions and head of household credits but just to be safe I think I'll go ahead and file a 1040 for 2010 forward...thanks so much for your advice!!! :)

nelsona · Post by **nelsona** » Sat Mar 03, 2012 10:57 am

Especially if this makes you eligible for child tax credit, why not?

itsybitsyspider · Post by **itsybitsyspider** » Sat Mar 03, 2012 12:02 pm

What good will the child tax credit do me? I don't work and my alimony income is 9960 a year....just filing head of household pretty much negates any taxes.....I have maybe 60 bucks of interest income so unless its just free money they are giving me most likely wont help right? anyway I'll file just for the sake of making sure I'm covered and can sleep at night :D

nelsona · Post by **nelsona** » Sat Mar 03, 2012 2:13 pm

The child tax credit is paid out even if you owe no taxes. $1000/child.

itsybitsyspider · Post by **itsybitsyspider** » Sat Mar 03, 2012 3:12 pm

Ok now that confuses me again, If i pay no taxes how can I get a credit? Can you please direct me to the proper publication that talks of the 1000 refund regardless of what your income is? I can't find it... :shock:

nelsona · Post by **nelsona** » Sat Mar 03, 2012 6:46 pm

You are suing software, right? The software no doubt has a help file.