Married couples with children claiming Head of Household instead of Married Filing Jointly are potentially putting themselves and their tax preparers in danger with the IRS. Yes, audit chances are small but not if it happens to you!!!!
Here’s the story – If you are married and living with your spouse at the end of December of any year, you only have two choices for a filing status – Married Filing Jointly or Married Filing Separately. That’s it. End of Story!
If your tax preparer tells you different, ask him if he will put it in writing and pay any penalties and fines if you are audited.
From the IRS Website:
www.irs.gov 2.2 Filing Requirements/Status/Dependents/Exemptions: Filing Status
If I moved out of my house on July 10, but was not divorced at the end of the year, can I file as head of household and take the earned income credit if I have a minor child? Can I also claim child care expenses?
You do not qualify for the head of household filing status because you and your spouse have not lived apart for the last 6 months of the taxable year and are not considered unmarried. Your filing status for the year will either be married filing separately, or married filing jointly. If it is married filing separately, you will not qualify for the Earned Income Credit and cannot claim a credit based on child care expenses. If you file a joint return with your spouse, you may be eligible to claim these credits. See
Publication 503,
Child and Dependent Care Expenses and
Publication 596,
Earned Income Credit.
References: Tax Topic 353, What is Your Filing Status?
Publication 501, Exemptions, Standard Deduction, and Filing Information
Publication 503, Child and Dependent Care Expenses
Publication 596, Earned Income Credit
If you have lived apart from your spouse for the last six months of the year (be able to prove it), you may be able to qualify for Single or Head of Household. Again, be able to prove it if necessary.
Tax avoidance by using the laws to lower your taxes is legal. Tax evasion to willfully get around the laws is punishable up to 5 years in jail and up to $250,000 in penalties.
Don’t risk this just to get a larger refund.