Who gets what?

[AnnieR]

Clients are living together, not married. Woman has custody of child from a previous marriage, Man claims daughter who is a product of this situation, HOH, because his W-2 income is about $1000 more than woman's. Since the woman has custody of her son, receives child support from ex-husband, has a full time job, she claims her son on her return. They split bills equally, own home together. Can she also file as HOH. His W-2 income is 30k, hers 29k, plus she gets child support. Why am I confused????

AnnieR

[TAXBILLY]

If they split expenses equally then there can be no head of household. HOH requires one to provide more than half of the support.

taxbilly

[David1980]

I also wouldn't base HOH off the W-2 income. I could earn a million bucks a year and put all of it in savings and live in the same household as someone else who actually claims HoH.

That said, if it's a true 50/50 split you got two people filing single with kid in that situation. (Or mother claims both kids since she's parent to both.)

[jainen]

>>Or mother claims both kids since she's parent to both<<

Take a close look at this with actual figures. Combined total tax for the two returns should be about the same whichever parent files as HoH. But the second child may add more than $1000 to the mother's EIC, while only worth half that on the father's higher income.