Can Unmarried Parents Living Together Each Claim Head of Household and Children?

I know the title might be confusing to some, and believe me, the first time I heard it, I was confused too.

So let me lay down the facts:

1. Two parents, who are unmarried, live together in the same household.
2. They’re both parents to the same children, age 8 and 10 years old.
3. They share the household living expenses.

The question is: can they each file as Head of Household, each claiming one child as a dependent?

That’s an interesting question, isn’t it? Certainly interesting too. Two persons each claiming Head of Household (HOH) filing status would give higher combined standard deduction, compared to Married Filing Jointly (MFJ) tax filing status.

For 2024, the standard deduction for MFJ filing status is $29,200.

For 2024, the standard deduction for HOH filing status is $21,900.

Now, if they could each file HOH, the potential combined standard deduction would be 2 x $21,900 = $43,800.

This is $14,600 higher than the MFJ standard deduction amount.

But, only if it would be acceptable. Sadly, it wouldn’t.

The IRS clearly specifies that a taxpayer can file as Head of Household status if he/she provides over one-half of the cost of maintaining the household for the taxpayer and a qualifying person.

By definition, if two parents share the household expenses, the likely scenario would be:

1. One parent provides over one-half of the household expenses, meaning only one parent can file as HOH.
2. Each parents provides exactly half of the household expenses, meaning neither of them can file as HOH.

If you’d like to read more on this topic, please check out this IRS publication.

OK, I get it. Can I file HOH if my child’s other parent claims him?

Situation: I am divorced with one child. This year my ex-spouse, who is the noncustodial parent, is entitled to claim our child as a dependent. May I still qualify as head of household?

Answer:

You may still qualify for head of household filing status even though you aren’t entitled to claim your child as a dependent, if you meet the following requirements:

1. You were considered unmarried on the last day of the year, which generally means you lived apart from your spouse for the last six months of the year or more.
2. You paid more than half of the cost of maintaining the home. This includes rent or mortgage payments, utilities, property taxes, and other necessary expenses related to the home. House expenses like groceries, children clothing expenses are all considered expenses for running a home.
3. The home you maintained was the main home of your child for more than half of the year. The child does not need to live with you the entire year, but the home should be their primary residence for at least half of the year.
4. Although your ex-spouse is claiming the child as a dependent, you can still claim head of household status as long as the child is a qualifying child for other purposes, such as the child tax credit, and you meet all other requirements.
5. By meeting these criteria, you can benefit from the head of household filing status, which generally provides a higher standard deduction and potentially lower tax rates compared to single filing status.

By understanding and meeting these criteria, you can take advantage of the head of household filing status, which generally provides a higher standard deduction and potentially lower tax rates compared to single filing status.

More money in the pocket is always good, as long as it’s acquired legally. We are here to help you.