HOH

[Ombud]

2 roommates share a house. Each has a child. Each child is related to only 1 of the adults. This is not an SO relationship -- just roommates.

1) Who gets HOH status
2) Does the other claim single with dependent

[Deleted]

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

Are their finances separate?  Do they both have their own bedrooms, etc. It is possible to claim two households in one residence depending on how it is set up..

[Value Buy]

why would the woman even consider giving up head of household in this situation?

[taxref]

While its possible for more than one HOH family to live under the same roof, in actual practice its rare.  Only if the 2 families were functioning as true separate economic units would both be able to file HOH.  

That is because a requirement of HOH status is that the taxpayer must pay over half the cost of maintaining the household.  Clearly, its not possible for more than 1 person in an economic unit to be paying over half of the costs.

[TheOtherMe]

If one lives upstairs, has a kitchen and bath, and the other downstairs with a kitchen and bath, it is possible to have two separate households under one roof.  

This would give them two economic units.    Read the link in oped's post for examples of how to set this up and how not to set this up.  It would be rare, but it can happen.

[chiver78]

Jan 12, 2015 10:54:32 GMT -5 Value Buy said:

why would the woman even consider giving up head of household in this situation?

why would you assume that a) it's a woman and a man as roommates and b) that the woman would be the one to give up HOH?

[Value Buy]

Jan 14, 2015 20:58:33 GMT -5 chiver78 said:

Jan 12, 2015 10:54:32 GMT -5 Value Buy said:

why would the woman even consider giving up head of household in this situation?

why would you assume that a) it's a woman and a man as roommates and b) that the woman would be the one to give up HOH?

ok

sorry about that.

[TheOtherMe]

Some of the cases cited in the link oped posted are two women, trying to cut down on costs.

[mwcpa]

head of household, as noted, is for the household.... it is possible to have more than one household in a building, but it is very difficult if the building is not a multi-unit property.... single family home with a "non married couple" with their own separate children who share everything will be difficult to say their are 2 households where head of household qualifies.... IRS may not catch it (with their decreased staffing and budget), but state agencies are and sending questionnaires....

[Deleted]

I think the details are in the 'share everything'. If they keep their own food in the kitchen and don't make parenting decisions together, don't share all their meals, have separate sleeping quarters, keep their own cell phone plans (an easy utility to separate these days where household phones are less common)... Etc. I think it wouldn't be too hard for two single parents living together to minimimize expenses, to claim they are separate households in the same residence.... Of course I'm not a tax person! Just my opinion of what I've read.

[TheOtherMe]

The way it was taught to me in my H & R Block class was the two adults had to have to separate households within the house.  Sharing a kitchen wouldn't cut it.  There would have to be a mother-in-law type of apartment within the house and then there are two separate units within the building.  

I rented out my basement for 3 months one summer but he used my kitchen, so I don't think that would have qualified.  

I had an uncle who had an apartment in his basement.  He never rented it out or used it as an apartment, but there was a full kitchen and bath there, along with living room, bedroom, etc.  That is definitely a separate unit had it been two single people with children living in each unit.

[Deleted]

Jan 12, 2015 0:19:56 GMT -5 Ombud said:

2 roommates share a house. Each has a child. Each child is related to only 1 of the adults. This is not an SO relationship -- just roommates.

1) Who gets HOH status
2) Does the other claim single with dependent

They are both HOH with one dependent each. I thought you have accounting or tax job? I think you know answer better than us!

Here is my example: 2 ladies each with kid share a house. One rent from other owner. This is clear 2 households are separate.
If they rent house from somebody else and both paying 1/2 rent still can make case for separate households. Sharing space for economy does not automatic make you a combined household.

If they both buy and own home together then that not separate households. But you say they just roommates so this I think not the case.

Edited to make clearer the rent example.

[Ombud]

HOH pays over 50% of household expenses .... rarer then most responding think. Good mental exercise going into self prepared tax season

[Deleted]

Jan 17, 2015 18:54:54 GMT -5 Ombud said:

HOH pays over 50% of household expenses .... rarer then most responding think. Good mental exercise going into self prepared tax season

I'm not sure what you mean?

[Deleted]

Jan 17, 2015 18:54:54 GMT -5 Ombud said:

HOH pays over 50% of household expenses .... rarer then most responding think. Good mental exercise going into self prepared tax season

There are 2 households existing in one space. They each pay 100% of each of their household expenses. They are not a combined household when you say not related, not romantic involved, each person responsible themselves and own child. The house itself is not the household.

If I rent a room in my million dollar home to a mom and her kid, that does not remove her household status because my mortgage is giant compare to her rent.  Her household expense is her rent, food, auto and things like that. Has nothing to do with my expenses just because she live in my space.

If mom with custody of kids is higher income working parent, then very common HOH situation for divorced parent. If non custodial parent is higher earner and support pays more than 50% then you correct. No one get HOH status.

[TheOtherMe]

In your example above, a room is most likely not a "household".  Where does mom cook for herself and her kid?  Oped's link provides all kinds of examples, going both ways.  

It's clear as mud unless it is a separate apartment.

[Deleted]

8332 is release of exemption. You can have exemption & credits but not be HOH.
Court can rule who gets exemption, but if child not residing with you, you are not HOH.

Where is document for exception from HOH rule?

[TheOtherMe]

No document for HOH to the best of my knowledge.