Tax Guru – Ker$tetter Letter

Q:

Dear Sir, I was wondering for head of household if there are 2 separate families living in one house ( address ) can both claim head of household? Sincerely

A:

That is possible.  However, the burden of proving that you both qualify is on you, so keep plenty of documentation.

Here is the relevant explanation from page 1-7 of my new CCH 1040 Express Answers book:

Multiple heads of household may share the same address if they maintain separate households and can provide documentation of that fact.

Gray Area.   Persons sharing the same living quarters are subject to special scrutiny by the IRS if more than one files as Head of Household.  Documentation of separate households is required if two persons with the same address file as Head of Household.  The same qualifying individual may not be used by both.  Records must clearly show which person made all rent, mortgage, utility, and other relevant payments to substantiate the claims.

You didn’t say what state you are in, but my experience has been that some state tax agencies (i.e. California) are actually much tougher in regard to verifying eligibility of taxpayers to claim the HoH filing status.

I hope this helps.  Your personal tax advisor can better evaluate your particular circumstances.

Kerry Kerstetter