Head of Household should allow qualifying relatives (e.g., 19-year-old non-student dependents)

[PavelMakarchuk]

Summary

PolicyEngine may incorrectly deny Head of Household (HOH) filing status when the qualifying person is a qualifying relative rather than a qualifying child. Specifically, a 19-year-old non-student child who is claimed as a dependent can qualify the parent for HOH status, even though they fail the qualifying child age test.

Legal Basis

IRC §2(b)(1)(A) provides two pathways to HOH status:

(A) maintains as his home a household which constitutes for more than one-half of such taxable year the principal place of abode, as a member of such household, of—

(i) a qualifying child of the individual (as defined in section 152(c)), ... or

(ii) any other person who is a dependent of the taxpayer, if the taxpayer is entitled to a deduction for the taxable year for such person under section 151

Source: https://www.law.cornell.edu/uscode/text/26/2#b_1_A

Two Types of Dependents

IRC §152(a) defines dependent as either:

1. A qualifying child - §152(c)
2. A qualifying relative - §152(d)

Source: https://www.law.cornell.edu/uscode/text/26/152#a

Qualifying Child Age Test - §152(c)(3)(A)

has not attained the age of 19 as of the close of the calendar year... or is a student who has not attained the age of 24...

A 19-year-old non-student fails this test and cannot be a qualifying child.

Source: https://www.law.cornell.edu/uscode/text/26/152#c_3_A

Qualifying Relative - §152(d)(1)

Requirements:

• (A) Not a qualifying child of any taxpayer
• (B) Gross income < exemption amount (~$5,050 for 2024)
• (C) Taxpayer provides >50% of support
• (D) Meets relationship test

No age test applies to qualifying relatives.

Source: https://www.law.cornell.edu/uscode/text/26/152#d_1

Exemption Amount During TCJA

Although TCJA suspended the personal exemption deduction (set to $0) for 2018-2025, the exemption amount is still calculated and used for the qualifying relative gross income test. For 2024, it's $5,050.

Source: https://www.irs.gov/pub/irs-drop/rp-23-34.pdf (page 4)

Expected Behavior

Scenario	Qualifying Child?	Qualifying Relative?	HOH Valid?
19-yr-old, non-student, gross income < $5,050	❌ (fails age)	✅	✅ via §2(b)(1)(A)(ii)
19-yr-old, non-student, gross income ≥ $5,050	❌ (fails age)	❌ (fails income)	❌ Not a dependent
19-yr-old, permanently disabled	✅ (age waived)	N/A	✅ via §2(b)(1)(A)(i)

Current Behavior

PolicyEngine may only check the qualifying child pathway (i) for HOH eligibility, not the qualifying relative pathway (ii).

Files to Investigate

• Head of Household eligibility logic
• Qualifying relative determination
• Interaction between dependent status and filing status

Related

• TAXSIM issue: HoH and dependents>18yearsofage policyengine-taxsim#652