2 HOH at one address

[photoman]

I have a new possible client calling and after questioning I learned:

Two divorced people and each say on last year return they filed HOH. They each have one child they claim each from previous marriages.

It seems there is a rule somewhere about only one HOH per residence or something.

Can anyone quide me to the pub ,etc


Thanks,

[KBTS]

Try searching the forum. There have been numerous discussions on this topic. May even be something in TTB chapter 3. Two HOH in same house is possible, but I would be very cautious and document everything if you decide to take on the client.

[taxea]

If they are living in the same house only one could possibly be paying more than 1/2 of the household support....ergo only one can be HOH.

[Larmil]

If they are living in the same house only one could possibly be paying more than 1/2 of the household support....ergo only one can be HOH.

A house is a physical structure. A household is people. There CAN be two households in the same house.

[Gary2]

Start with http://www.irs.gov/pub/irs-sca/1998-041.pdf , and check if there are updates or newer cases.

The essential point is that the word "household" is not defined by the physical quarters. A household exists within a house, but it's not necessarily the entire house.

[erchess]

Theory vs Reality

I agree with those who say it is theoretically possible to have more than one household in one home. However, as a practical matter I'd have to say I have never seen any situation where the people kept anything like sufficient records to make it fly. That of course is why someone earlier said it is necessary to document everything.

[FEDUKE404]

Observation of note

For many of the EIC crowd, "only two" HOHs under one roof is just a starting point.

FE

[Gretel]

I believe this is substance over form, like so many things. If they keep everything separate (Bed, food, table) and just share living quarters they might have two separate households.

[photoman]

After reading the responses and Gary2 reference to a 1998 case, It might be possible , but after a number of questions I need to verify and proof of information in writing it looks like a difficult road to go down. Their prior Tax Prep is out of business this year so I get to deliver the good news.

Thanks for all the great information.

Ron

[ddoshan]

If they are living together I can't see myself filing each as HH. Probably is possible but I am not buying it unless there are very special circumstances such as basically separate quarters, separate food budgets, etc.

[Jesse]

A house is a physical structure. A household is people. There CAN be two households in the same house.

That is correct.

If they are living in the same house only one could possibly be paying more than 1/2 of the household support....ergo only one can be HOH.

Gary2 is very informative - you should actually read the memorandum.

Start with http://www.irs.gov/pub/irs-sca/1998-041.pdf , and check if there are updates or newer cases.

The essential point is that the word "household" is not defined by the physical quarters. A household exists within a house, but it's not necessarily the entire house.

Solely for purposes of section 44A
and this section, if two or more families occupy living quarters in common, each of
the families is treated as constituting a separate household, and the taxpayer who
provides more than one-half of the costs of maintaining such a separate household
is treated as maintaining that household. Thus, for example, if two unrelated
taxpayers each with children occupy living quarters in common and each taxpayer
pays more than one-half of the household costs incurred by each respective family,
each taxpayer will be treated as maintaining a separate household.

[taxea]

A house is a physical structure. A household is people. There CAN be two households in the same house.

could you give me a cite that allows two adults in one house to both claim hoh

[Jesse]

With all due respect taxea is incorrect.

Maybe it never happens in Hawaii, but in the rest of the world there are families shacking up together - not always by choice. It may not happen often but it can happen!

Conclusion
(1) The determination of whether two unmarried individuals, each living with their
own dependent children in a shared dwelling, may each claim head of household
filing status is not a matter simply determined by physical boundaries, but by all the
facts of a case.

(2) Section 1.2-2(d) of the Income Tax Regulations details the expenses that
should be considered in determining whether a taxpayer has furnished more than
one-half the cost of maintaining a household. Such expenses include property
taxes, mortgage interest, rent, utility charges, upkeep and repairs, property
insurance and food consumed on the premises. The cost of maintaining a
household under § 2 of the Internal Revenue Code does not include the cost of
clothing, education, medical treatment, vacations, life insurance, and transportation,
or any amount which represents the value of services rendered in the household by
the taxpayer or by a person qualifying the taxpayer as a head of household.


(3) Acceptable verification of expenses for the cost of maintaining a household
includes cancelled checks and receipts for the expenses such as taxes, interest,
rent, utilities, repairs, insurance, and food consumed on the premises, records to
show who paid or contributed toward the payment of the expenses and the amount
contributed by each person involved, and amounts received from governmental
agencies such as rent subsidies.