To claim Head of Household (HOH) as your filing status, certain criteria must be met, and having a dependent is a key requirement. In this context, a qualifying dependent often includes a child, relative, or another individual for whom you provide financial support and who meets specific eligibility criteria.
For your niece to qualify as your dependent, she must meet the relationship, residency, age, and support tests outlined by the Internal Revenue Service (IRS). The relationship test is satisfied if she is your niece, and the residency test requires her to have lived with you for more than half the tax year. The age test generally mandates that she is younger than 19, or 24 if a full-time student, unless she is permanently and totally disabled.
Additionally, you must provide more than half of her financial support during the tax year to pass the support test. Financial support includes costs such as housing, food, education, and medical care. If you fulfill these requirements and your niece qualifies as your dependent, you may be eligible to file as Head of Household, offering certain tax advantages compared to other filing statuses.
It's crucial to keep accurate records and consult the latest IRS guidelines or a tax professional to ensure you meet all the necessary criteria and maximize your tax benefits.