Head of Household Due Diligence Questionnaire

Your return may qualify for the following special credits/deductions; therefore, it is imperative you read and understand this entire document.

If you need more time to complete this form, please scroll all the way down to the bottom and hit save. A link will be emailed to you so you can pick up where you left off later. 

HEAD OF HOUSEHOLD FILING STATUS:
Head of Household filing status generally is for unmarried individuals who provide a home for qualified dependents.

In order to qualify for Head of Household filing status, you must meet the following requirements:

• You are unmarried or considered unmarried as of the last day of the tax year
  • See definition of “unmarried” below
• You paid over half the cost of keeping up a home in which you lived with a dependent (except for a child for whom you are not the custodial parent)
  • See definition of custodial parent below
• or an unmarried qualifying child who isn’t your dependent,
• OR You paid over half the cost of keeping up a home that was the main home for the full year of your parent whom you can claim as a dependent (they don’t have to live with you)

You were considered to be unmarried as of the end of the tax year if one of the following applied:

• You were legally separated under a decree of divorce or separate maintenance
  You are married but lived apart from your spouse for the last 6 months of the tax year and file a separate tax return and paid over half the cost of keeping up your home.
• You are married to a nonresident alien.
• You are considered unmarried for head of household purposes if your spouse was a nonresident alien at any time during the year and you don't choose to treat your nonresident spouse as a resident alien.
  • However, your spouse isn't a qualifying person for head of household purposes. You must have another qualifying person and meet the other tests to be eligible to file as head of household.
  • Choice to treat spouse as resident. You are considered married if you choose to treat your spouse as a resident alien. (Chapter 1 of Pub. 519)

You were considered to be the custodial parent of any child who lived with you for greater than half of the nights during the last year. If you are not the custodial parent but are eligible to claim a child as a dependent due to a release of claim from the custodial parent; you cannot consider that child in determining whether you qualify as head of household.

Conversely, if you are the custodial parent but not eligible to claim the child as a dependent because you released the claim to the non-custodial parent, you still can consider that child to determine whether you qualify to file for head of household.

KEEPING UP A HOME
You must pay more than half of the cost of keeping up a home for the year to qualify for head of household status.

Costs you include:

• Rent
• Mortgage Interest
• Property Taxes
• Insurance on the home
• Repairs
• Utilities
• Food eaten in the home

Costs you don't include:

• Clothing
• Education
• Medical Treatment
• Vacations
• Life Insurance
• Transportation
• Value of your services or those of a member of your household

This questionnaire is designed to assist us in determining if you qualify for some valuable refundable tax credits. While the questions may seem to be a little intrusive at times, they are questions that we are required to ask under the Internal Revenue Code § 1.6695-2 Due Diligence Requirements. Failure to follow due diligence requirements can result in penalties of a minimum of $635.00 or more for each credit claimed on your tax return.

***YOUR RETURN WILL NOT BE FINALIZED UNTIL YOU ANSWER EACH QUESTION BELOW AND SIGN AND RETURN THIS DOCUMENT TO US.

Please answer the following questions:

By signing below, you acknowledge that you have read the entirety of this statement and fully understand and agree to the following:

DISCLOSURES

• I acknowledge ONLY 1 PERSON PER ADDRESS CAN FILE HEAD OF HOUSEHOLD (Unless you are unrelated roommates with two separate families)
•  I understand that Head of Household Status means that:
  1. You are unmarried or considered unmarried on the last day of the year.
  2. You paid more than half the cost of keeping up a home for the year.
  3. A qualifying person lived with you in the home for more than half the year (except for temporary absences, such as school). However, if the qualifying person is your dependent parent, he or she doesn't have to live with you. **See Special rule for parent, later, under Qualifying Person).
• I have been advised that the Special Rule for parents and the Head of Household Status are as follows:
  • If your qualifying person is your father or mother, you may be eligible to file as head of household even if your father or mother doesn't live with you. However, you must be able to claim an exemption for your father or mother.
  • Also, you must pay more than half the cost of keeping up a home that was the main home for the entire year for your father or mother. If you pay more than half the cost of keeping your parent in a rest home or home for the elderly, that counts as paying more than half the cost of keeping up your parent's main home. 
• I acknowledge that if I am married me and my spouse lived at two separate households for at least the last 6 months of the year. Whereas I can provide proof to the IRS, if requested, by showing utilities in each of our names at separate residences.
• I acknowledge and understand just because I have dependents doesn't mean I have to file Head of Household Status.
• I understand this if I am audited and my Head of Household status is challenged, I will need to provide the following items:
  • Rent receipts or Mortgage interest statements,
  • Utility Bills,
  • Grocery receipts,
  • Upkeep/repair bills,
  • Property/Renters insurance statement,
  • Property Tax statement,
  • Other household expenses

Furthermore, I certify that all information in this questionnaire, including any supporting documentation and information, is true and complete to the best of my knowledge. I agree and acknowledge that falsified information, misrepresentation or omissions may disqualify me for specific tax credits as determined by the IRS. I have also been informed that claiming a dependent for Head of Household Status can result in an audit, fines, and penalties if information provided to a prepare is incorrect.