Filing as head of household provides tax benefits over filing as single or married filing separately. To qualify as a head of household, you must meet specific requirements set by the IRS. This often leads to the question – can a mother and daughter living together both file as head of household? The short answer is maybe, but it depends on the details of their living situation.
Head of Household Filing Status
Head of household is a filing status for unmarried taxpayers who provide a home for certain other individuals. To qualify as a head of household, you must:
- Be unmarried or considered unmarried on the last day of the year
- Pay more than half the cost of keeping up a home for the year
- Have a qualifying person living with you in the home for more than half the year (except for temporary absences)
A qualifying person can be your child, grandchild, parent, sibling, niece/nephew, or other descendant. It can also be any other person for whom you can claim an exemption.
Requirements for More Than One Head of Household
The IRS allows more than one taxpayer to file as head of household if they share the same home. However, each taxpayer must meet all the requirements.
For a mother and daughter to both claim head of household status, they would need to meet the following criteria:
- They maintain separate finances and each pay for more than half the cost of keeping up the home
- They each have a qualified person living with them for more than half the year
This means the mother and daughter cannot qualify based on each other. The daughter would need her own qualified person such as a child. And the mother would need a different qualified person such as a parent or sibling living with her.
Examples of Mother and Daughter Filing Head of Household
Here are some examples of situations where a mother and daughter may or may not both qualify for head of household filing status:
Example 1
- Mother is widowed and lives with her adult daughter
- Daughter has a young child who also lives in the home
- Mother and daughter split household expenses 50/50
In this case, the mother and daughter can both file as head of household. The daughter qualifies by having her child live with her. The mother qualifies by having her daughter live with her.
Example 2
- Mother is divorced and lives with her adult daughter
- Daughter does not have any children or dependents
- Mother and daughter split household expenses 50/50
Here, only the mother would qualify for head of household status since the daughter does not have a qualified person living with her. The mother qualifies by having her daughter live with her.
Example 3
- Mother is widowed and lives with her adult daughter and grandchild
- Daughter has a young child who also lives in the home
- Mother pays more than half the cost of keeping up the home
In this situation, only the mother would qualify as head of household. Even though the daughter has a qualifying person (her child), she does not pay over half the cost of the household expenses. The mother meets both requirements – she has a qualified person (her daughter) and pays over half the household costs.
Tax Benefits of Head of Household
Filing as head of household offers greater tax benefits than filing as single or married filing separately. Some key advantages include:
- Higher standard deduction amount
- Lower tax rates applied to some income
- Higher income limits for certain credits like the Child Tax Credit
For 2022, the standard deduction amounts are:
| Filing Status | Standard Deduction |
| Single | $12,950 |
| Married Filing Jointly | $25,900 |
| Head of Household | $19,400 |
Heads of household also have wider tax brackets, meaning more taxable income is taxed at lower rates. For example, in 2022 the 12% bracket for singles goes up to $10,275. But for heads of household, the 12% bracket goes up to $14,650.
Risks of Improper Head of Household Filing
While filing as head of household can provide tax savings, it also comes with risks if you do not truly meet the requirements. Issues with improperly claiming head of household status include:
- IRS audit – Getting flagged for an audit wastes time responding to IRS notices and providing documentation.
- Tax reassessment – The IRS may reassess your taxes and you’ll owe back taxes, interest, and penalties.
- Tax fraud penalties – Falsely claiming head of household is considered tax fraud. This can lead to civil and criminal penalties.
Before filing as head of household, ensure you can pass these three tests:
- You are unmarried or considered unmarried on the last day of the tax year
- You paid more than half the cost of keeping up the home for the year
- You had a qualified person living with you in the home for more than half the year
Getting Help Determining Your Filing Status
Determining if you qualify for head of household filing status can be complicated, especially if you share a home with other family members. Here are some options to get help:
- Use IRS resources – The IRS website has detailed information, guides, and interactive tools to assist you in determining your correct filing status.
- Consult a tax professional – Getting advice from a CPA or tax attorney can ensure you claim the proper filing status and maximize your tax savings.
- Use tax software – Tax preparation programs will step you through a series of questions to determine your eligibility and select the right status.
Conclusion
Claiming head of household status alongside another family member like a daughter comes down to meeting all the requirements independently. Each person must have their own qualified individual living with them and be paying for over half the housing costs. Improperly claiming the status can lead to IRS trouble, so consult the rules carefully or seek professional help determining eligibility.