Residency vs. Dependency
Stop letting your tax software make your co-parenting decisions.
Most platforms assume that if you claim a 'Dependent,' you are also the 'Head of Household.' For divorced parents, this is often false.
The Reframe: Head of Household is about where the child sleeps (Residency). Dependency is about who gets the credit.
The Sound Strategy:
- Check the Night Count: If you don't have 183 nights, you can't be HOH, even with a waiver.
- Verify the Status: Custodial parents can keep HOH even if they don't claim the child as a dependent.
- Audit Protection: Filing HOH without residency is one of the most common red flags for the IRS.
Watch the full podcast episode for more details: https://youtu.be/TLLoUIgKUKo
DISCLAIMER: This content is for educational purposes only and should not be considered personalized financial advice. Always consult with a qualified financial professional before making financial decisions.