| Term |
Definition |
| Head of Household |
The filing status used
by an unmarried taxpayer who pays over half the
cost of maintaining his home that is the
principal residence for over half the tax year of
his unmarried child or other lineal descendent (this
child does not have to be a dependent) or of his
dependent married child or other qualified
relative. A dependent parent who does not live
with the taxpayer may also qualify the taxpayer
for the head of household status if
qualifications are met. |
| Hobby Loss |
A nondeductible loss
arising from a personal hobby as contrasted with
a loss arising from an activity engaged in for
profit. |
| Holding Period |
The period of time
property has been owned for income tax purposes.
The holding period determines if gain or loss
from the sale or exchange of a capital asset is
long or short term. |
| Home Office Expenses |
Expenses of operating a
portion of a residence used for business or
employment-related purposes. Several restrictions
limit the deduction for home-office expenses. |
| Hope Scholarship
Credit |
A nonrefundable credit
of up to $1,500 per qualified student for tuition
and fees paid for the first two years of post-secondary
education. |
| Household Employee |
An individual who
performs nonbusiness services for the taxpayer in
or around the taxpayer's home. Such services
include child and dependent care, house cleaning,
cooking, and yard work. |
| Household Expenses |
A portion of total
support; the value of lodging plus food consumed
in the home, utilities paid, and repairs made.
The total is divided equally among all family
members. Each member's share of household
expenses is part of his or her total support. |
| Husband and Wife |
A status that, among
other things, entitles a couple to file a joint
income tax return. For the purpose of joint
returns, common-law marriages are recognized only
if the state in which the two persons reside
recognizes such marriages or if the state in
which the marriage began recognizes common-law
marriages. The status as husband and wife on the
last day of the tax year governs the right to
file a joint return. |
| Hybrid Method of
Accounting |
A combination of
accounting methods, usually of the cash and
accrual methods. |
