I've become the lucky chosen victim of an audit for the year of 2006. I think my donation deductions may have tipped them off or something. Anyway, they want proof of my deductions and questioning my head of household status. Well, I can prove my deductions but I'm concerned about the head of household issue. They want to see a copy of my townhome lease agreement but my lady is on there too. Since we're not married we of course file seperately and she files head of household also. Would that bring her in the picture to be sweated by the IRS because I don't know if two people can be head of one household. I'm gonna just take one behind the bushes on the head of household issue and just pay that portion back if she's at risk. What's the JettMan to do??
2007-08-31 13:04:37 · 8 answers · asked by 747 3 in Business & Finance ➔ Taxes ➔ United States
Sorry for being so vague. My lady and I have a son together so she files him. I file my two other children from a much much previous relationship, which I have done for years now in agreement with the mother.
2007-08-31 14:25:58 · update #1
I don't see any problem.
You and your lady both rent a townhome, and share the rent. (It is always better economically to rent a bigger apartment than renting two small apartments).
You are not married.
Each one of you supports a qualifying child. You support your two children and she supports her son. Both of you have paid more than half of the expenses of keeping a home.
So both of you can put your status as Head of household.
2007-08-31 18:48:36 · answer #1 · answered by MukatA 6 · 0⤊ 0⤋
Head of household requires that you pay MORE than half of the cost of maintaining a household for an eligible dependent. So no, there's no way two people can both be head of the same household, since they can't both be paying over half of the expenses. Beyond that, unless you also have a dependent close relative, like maybe your child living with you, or provide a household for a dependent parent, you are not eligible to file as head of household.
It sounds like she probably also illegally filed head of household. It's very possible the IRS will be getting to her one of these fine days to talk about her filing also.
2007-08-31 14:08:11 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
If you don't have your own children or another close family relative living with you then you're not entitled to claim Head of Household.
I have no idea why the IRS would want to see a copy of your lease agreement as it has nothing to do with your eligibility to claim Head of Household filing status.
If she doesn't have her children or another close family relative living with her, she's not entitled to claim that filing status either. Whether or not the IRS investigation of you would trigger any interest in her tax return is hard to say though if it's at the IRS office they would only be interested in seeing proof of your eligibility for claiming that filing status.
Addendum: Unless you have custody of your children and they live WITH YOU you cannot file HoH.
2007-08-31 13:17:39 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
For tax purposes I always tell individuals - documentation, documentation, documentation.
To use the filing status Head of Household you must meet all of the following requirements.
1) You are unmarried or "considered unmarried" on the last day of the year.
2) You paid more than half the cost of keeping up a home for the year, which consist of property taxes, mortgage interest expense, rent, utility charges, upkeep and repair, property insurance, food consumed on the premises and other household expenses.
3) A "qualifying person" lived with you in the home for more than half the year (except for temporary absences, such as shcool).
You must be able to claim an exemption for your child. However, you meet this test if you cannot claim the exemption only because the noncustodial parent is able to claim the child using the rules described in Children of divorced or separated parents.
Your girlfriend, the same rules as above applies for Head of Household filing status. Yours and her children lived with both of you for more than half the year.
You are not able to claim her children for Head of Household filing status and your girlfriend is not able to claim your children for Head of Household filing status.
I would suggest school records, check stubs for paying the bills [cost of the home], and child support payment records.
You are being audited.
You might want to check with a tax accountant, who is recommended to you, would be able to represent you, and assist and advise you during this audit.
2007-08-31 17:03:18 · answer #4 · answered by dd 4 · 0⤊ 0⤋
In order to declare head of household you must also claim a dependent. Only 1 person can claim a given individual as a dependent-there are specific rules for this.
2007-08-31 13:13:30 · answer #5 · answered by azohawk 3 · 0⤊ 0⤋
No she isn't married to you so if she has her own income she can file totally separate from you and not be involved. Married people can file separately when they maintain 2 households so the opposite should be true too.
But you can get a tax lawyer and they can fill you in on what you can and cannot do its worth paying the retainer.
2007-08-31 13:13:53 · answer #6 · answered by Tapestry6 7 · 0⤊ 1⤋
Only one of you can be "Head of Household" due to the more than 50% rule.
2007-08-31 15:47:36 · answer #7 · answered by Wayne Z 7 · 0⤊ 0⤋
I think one issue here may be the Earned Income Credit. If she is claiming it or you are claiming it-you are probably wrong. Total household income impacts the EIC. If you are both claiming HOH and the EIC is involved, watch out! IRS is cracking down on EIC fraud.,
2007-09-02 10:50:14 · answer #8 · answered by exirsman 5 · 0⤊ 0⤋