Head of Household Twist

[KBTS]

This is the first time I have encountered this situation:

Client is divorced and his teenage child lives with him. Pays all cost of maintaining his home from January through November. Client's girlfriend (also divorced) has her own child and provides all costs of maintaining their home Jan- Nov. In November, she moves in with my client.

Both would seem to qualify for HoH status based on the fact that they provided over 1/2 cost of maintaining their own homes during year. However, will this put up a red flag with both claiming HoH with same address on their returns? I've read the arguments for couples living in the same home all year with both claiming HoH and the pitfalls there, but this situation is not the same. My concern is that the IRS will interpret this situation to be the same since they are filing with the same address.

Any thoughts?

[BP.]

Any thoughts?

I would still likely file each as HOH . . . but, probably also do this, since there is a chance of scrutiny:

Maybe look at what is lost by going from HOH to single for one of them, and use that as the yardstick for the client to determine what they wanted to do versus how great are their records to prove HOH? Like rents, utilities, food etc. Had a client that had to prove HOH last year, but she had fabulous records.

[Burke]

Both would seem to qualify for HoH status based on the fact that they provided over 1/2 cost of maintaining their own homes during year. However, will this put up a red flag with both claiming HoH with same address on their returns?
Any thoughts?

It is not likely to be even noticed by the IRS, unless some other factor which is outside the norms causes the returns to be looked at, so I would not worry. Is EITC involved?

[KBTS]

It is not likely to be even noticed by the IRS, unless some other factor which is outside the norms causes the returns to be looked at, so I would not worry. Is EITC involved?

Unfortunately it is for the girlfriend. I might look at whether HoH will even make a difference for her.

[taxea]

Only one adult in a household can qualify for HH even if documentation can prove that they did not share the household expenses. Giving it to both is not something I would do unless I could prove to the IRS that they both qualify.

[Kram BergGold]

Disagree with taxea

Two single people each with a child, live in a 4 bedroom house. Each parent pays his or her share of the household costs. As each parent is paying 100% of the cost of his or her 1/2 of the house and each has their own qualifying child they each can be H of H.

[taxea]

I accept the disagreement however, I am not done researching this issue. If I find an answer I will post it

[Burke]

In this particular case, they did not live in the same house for 5/6ths of the year. They just wished to file using the same address.

[BOB W]

Get A Po Box

[Jesse]

Here is a lengthy discussion:

http://www.thetaxbook.com/forums/showthread.php?t=10398&highlight=head+household+taxea