Can Two People Claim Head of Household at the Same Address In 2022?

Jan 15, 2024 By Susan Kelly

Head of the household is among the most frequently filed tax statuses. It's not the same as "single status," which is only for taxpayers who don't have any dependents, or "joint filing," that's only for married couples who share their financial responsibilities. Head of the household status can allow deductions for those who aren't married but have to claim dependent status. Most people are now searching online that can two people claim head of household at the same address? Although it's not the same tax benefits as joint filing with married partners, filing as a head of the household status does result in significant reductions in tax burden for single parents or those caring for elderly family members or relatives who are unable to care for themselves.


What Exactly Does "A Household" Mean?


The IRS's view is that, among other things, taxpayers must "maintain the status of a home a family .... The word "household" is the one that triggers the tax problem. Is "a household" mean one singular residential structure, and can "a household" have less physical significance and refers to the economic units that reside within the home?


In the past, IRS adopted the stance of " The question of who is eligible to file taxes as the head of household is not one that can be answered just by looking at a property's borders; rather, it must take into account all of the relevant information." That is that just because two families have one physical location doesn't mean that they can't be both heads of household. However, people need to be aware of the conditions of their particular situation.


Qualifying Rules



It would help if you Were Unmarried


The primary test that qualifies for HOH eligibility is that you have to be not married or "considered unmarried" as of the end of this tax season. You're eligible if you have never been married or legally divorced and haven't had a remarriage. It is also possible to qualify by not living with your spouse in the final one-half of the tax year. This is the test to determine if you are being considered unmarried. In the case of temporary absences, such as going to classes outside of the state, or even incarceration does not count. When you move to a different household, your goal must be to ensure that the spouse and you aren't likely to be living together ever again.


You Must Have a Dependent


You also need to be able to claim a person who is closely related to you as a dependent. The dependent could be an eligible child or a qualified family member. They have to reside in your home for at least 50% of the time, but the IRS permits an exemption to this requirement to parents as well as other relatives when you contribute more than half of the cost of maintaining your residence during the year.


The IRS also has a specific option for separated or divorced parents. You'll still qualify as head of the household if you are the parent with custody and your child lives at your house for more than half of the year. You've renounced the right to declare the children as dependents for different tax reasons and allow another parent to do this.


You Must Pay More Than Half Your Home's Costs


Additionally, you must pay more than half of the cost of maintaining your home during your tax year. These costs are rent or mortgage interest as well as property taxes, utilities, utility bills as well as property insurance, groceries, and other household goods. They do not include clothes, health insurance, or entertainment.


Proving That Two Households Exist



Following the IRS tax code, taxpayers sharing their physical addresses demonstrate that they reside in distinct households and live separate lives apart from home. A few factors that could determine the favor of two households that share the same physical home could include:


  • Each family has its own telephone lines.
  • The taxpayers keep separate financial records and bank accounts.
  • Each family member contributes financially to the other.
  • Adult taxpayers have their own bedrooms.
  • The children are in separate bedrooms.
  • The family members do not celebrate holidays or birthdays in the same way.


Conclusion


Tax filing as the head of household may provide more credit and deductions. The head of the household carries the benefit of a less tax-deductible rate. To be considered the head of the household, you'll have to meet certain requirements, such as having a dependent.

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