Ellen, age 39 and single, furnishes more than 50% of the support of her parents,

Question

Ellen, age 39 and single, furnishes more than 50% of the support of her parents, who do not live with her; their only source of income are Social Security benefits. Ellen practices as a self-employed interior decorator and has gross income in 2015 of $120,000. Her deductions are as follows: $30,000 business and $8,100 itemized.

Can Ellen qualify for head of household filing status? Explain.  

Can Ellen qualify for head of household filing status? Explain.  

Explanation / Answer

Ellen can qualify for head of household filing status if she furnishes more than half of the cost of maintaining her parents’household. Also, at least one of Ellen’s parents must qualify as her dependent

taxable income

120000-30000 - 8100 - personal exemption - dependency exemptions for parents = 81900

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