Two taxpayers may be able to claim HOH even if they reside at the same address
In order to answer the question, it's important to keep in mind the criteria to be eligible for head of household status:
- The taxpayer must be unmarried,
- The taxpayer must be able to claim as a dependent a closely related person,
- That closely related person must actually reside at the same residence as the taxpayer for more than half the year, and
- The taxpayer must pay for more than half the cost of maintaining the residence.
When two (or more) taxpayers share the same address, the question sometimes arises whether the address itself constitutes one household, or whether each family living at that address constitutes its own separate household.
The Internal Revenue Service analyzes the situation based on all the facts and circumstances. The IRS's general thinking is outlined in a memorandum from the Chief Counsel's office (SCA 1998-041, pdf 9 pages).
Some factors that would weigh in favor of there being two separate households sharing the same residence might include:
- Are there separate telephone lines for each family? Separate utility bills?
- Do the taxpayers maintain separate finances and separate bank accounts? Or do they have a joint account or commingle funds?
- Does one family contribute to the financial support to the other?
- Do the adult taxpayers have separate bedrooms?
- Do the children have separate bedrooms?
- Do the family members give Christmas and birthday presents together or separately?
