Single or HOH?

[taxdan]

I have an unmarried client who lives with his girlfriend. They have two kids together (minors) who live with them. Each parent makes about the same amount of money...about $80K.

She claims both kids as dependents (I do not do her taxes). Can he claim head of household with no dependents if he pays for more than half of the upkeep of the home?

I believe she is claiming HOH on her return. Two people can not claim HOH living under the same roof can they?

Thanks so much for any help.

Dan

[RitaB]

He can file as HOH if he paid over 1/2 the costs of keeping up the home and his child lived with him in that home for more than half the year. Will need to enter qualifying child's name on 1040, line 4. (Of course, child could not have provided over 1/2 his own support, and I don't think that applies, but thought I better cover my beep.)

No, both cannot be "head" of household. (Two heads is always a problem.) If one paid over half, the other could not have paid over half.

[taxdan]

Thanks so much Rita.

It's always nice to confirm my own thoughts.

I have a feeling this client knowingly wants to file as HOH even though his girlfriend is. I had a voicemail from him upset that I filed him single intstead of HOH because another CPA told him he should be filing HOH.

I just wanted to get my ducks in order before I call him back and tell him to go to the other tax preparer next time.

Thanks!

Dan

[taxdan]

I apologize....but I have to ask...

My client says that this LONG TIME CPA swears up and down that two unmarried people living under the same roof can each claim HOH because they are each considered paying 100% of upkeep on their "home". Of course, this is assuming they each pay half of the household expenses for themselves and for one of each of the two minor children living there.

Can there be ANY truth to this?

I really want to be sure on this one because the other CPA told my client what a horrible job I did not filing him as HOH. I would like to call this CPA and have a discussion with her.

Thanks!

Dan

[TAXBILLY]

http://www.unclefed.com/ForTaxProfs/irs-wd/1998/1998-041.pdf

taxbilly

[jainen]

>>They have two kids together<<

Taxbilly has a great link worth quite a bit of study time. One way to summarize it is to say that the two households must maintain separate finances. In my opinion, that refers to all finances, not just the housing costs. In that sense the taxpayers in the original post are not likely to qualify. It is not reasonable to assume that a parent earning $80,000 is not contributing anything to the support of his own minor child with whom he shares living space.

[RitaB]

http://www.unclefed.com/ForTaxProfs/irs-wd/1998/1998-041.pdf

taxbilly

Well, if that don't beat all. Never heard the like. Hmmm.

So, Dan, see if these people were maintaining two separate households within one dwelling. Did I get that right, taxbilly? Seems like an uncommon arrangement, and not likely for this boyfriend and girlfriend.

I KNEW I shouldn't have opened my trap on that question.

[taxdan]

I will definitley do some research. Now I feel a little more confident talking to my client about this.

Thank you so much!!!!

[Eli]

She claims both kids as dependents (I do not do her taxes). Can he claim head of household with no dependents if he pays for more than half of the upkeep of the home?

Dan

Maybe I'm not reading it correct, but I still dont see how he can claim HoH without a dependent.

Eli

[kcjenkins]

Eli, lots of women claim HOH while letting the other parent claim the child as a dependent, using the 8332. That is not the problem. The problem is the idea that they could use the argument that they were maintaining truly separate households. The link is to advice where two people merely share a space, but not a bedroom. Yet the case here, the two people have kids together. NO WAY is that going to fly.