Head of Household

[Christian]

A couple I have assisted for many years has contributed over half the support for two grandchildren who live with their mother at another location. She signs over the dependency status to them each  year and they get the $500 per child credit for other dependents. The husband died in August 2021 and the filing in 2022 was their final mfj return. I planned on filing her as hoh this year only to read that the grandchildren must reside in her home for over six months to claim this status. Noting that if the dependent was one of her parents not living with her for which she supplied over half the support she would qualify as hoh. Am I reading this correctly or is their an available exception for grandchildren for which a grandmother provides over half their support ? 

[Gail in Virginia]

Not for head of household.  You are reading correctly.

[Lion EA]

Let the mother claim her children for any available credits. If mother gets a refund, she can repay grandmother.

[mcb39]

18 minutes ago, Lion EA said:

Let the mother claim her children for any available credits. If mother gets a refund, she can repay grandmother.

What if the mother doesn't have any income?  Then he should just go ahead and claim them, but as S instead of HOH.

[Christian]

Aye there's the rub. The mother has no income or so I am told. I was hoping to save some of the standard deduction she and her husband both of whom are over 65 had by using the HOH status. Well with single she will at least retain the credits.

[Sara EA]

Since the daughter had no income, did parents support her too?  If so, she can also be a qualifying relative who doesn't have to live with the taxpayer.