The Two 51% Pizza Trap
Are you 'Double-Dipping' on Head of Household? The IRS is watching.
Mathematically, two people living in the same house cannot both pay more than 50% of the expenses. Yet, thousands of separated couples try to claim it every year.
The Reframe: Sharing a home might save you rent, but it might cost you your tax refund.
The S3 Strategy:
- The 50% Test: HOH requires you to provide more than half of the total household upkeep.
- The Red Flag: Two HOH filings at the same address is an automatic audit trigger.
- The Fix: Decide which parent qualifies for HOH and have the other file as Single or Married Filing Separately.
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.