I disagree with DMarkM1.
The IRS has indicated that a "household" is not necessarily all the people living in a single home. Your household might only consist of you and your daughter, in which case you only need to pay more than half your own expenses, and not more than half of the entire house including your friend's family. This seems to be a good article. https://www.thebalance.com/two-heads-of-household-3193038
According to the IRS, taxpayers who share the same physical address must prove that they live as separate households, and that they have independent lives outside the residence. Some factors that can weigh in favor of two separate households sharing the same physical residence might include the following:
- Each family has separate telephone lines.
- The taxpayers maintain separate finances and separate bank accounts.
- Neither family contributes financial support to the other.
- The adult taxpayers have separate bedrooms.
- The children have separate bedrooms.
- The family members don't celebrate holidays or birthdays together.
Professional advice may be recommended.
If you pay rent to your friend, and buy separate groceries for yourself and your daughter, and otherwise maintain separate lives, you are on the right track.
