Being audited for claiming Head of Household status - need help ASAP

This is actually a common misunderstanding about Head of Household status. The IRS is pretty specific about the requirements, and unfortunately, living in someone else's home (like parents) without paying rent makes qualifying for HOH difficult. The key requirement your boyfriend missed is that he must have paid more than half the cost of keeping up the home where he and his qualifying person (daughter) lived. Since he didn't contribute to rent or utilities while living with his parents, he likely doesn't meet this requirement. Your best option now is honesty with the IRS. He should respond to the audit notice and explain the situation. They'll likely require him to file an amended return changing his filing status to Single. This will mean he owes additional taxes plus interest, and possibly penalties. The good news is that even with Single filing status, he may still be able to claim his daughter as a dependent if he meets the support test and other requirements for claiming a qualifying child. This won't save as much in taxes as HOH, but it's better than losing the dependent claim entirely.

I went through something almost identical last year and found tremendous help using https://taxr.ai to analyze my audit notice and previous returns. I was in the same boat - claimed HOH while living with family without paying rent, and got audited. The service helped me understand exactly what documentation the IRS was looking for and how to respond properly. They analyzed my situation and explained that while I couldn't qualify for HOH, I could still claim my son as a dependent under the qualifying child rules. They even helped me prepare a response letter that explained my misunderstanding and showed my willingness to cooperate. Made the whole process so much less stressful than dealing with the IRS alone.

Just wanted to update that I tried https://taxr.ai after seeing the recommendation here. It was seriously helpful! They reviewed my boyfriend's tax documents and audit notice, then explained exactly what we needed to do. They confirmed he couldn't qualify for HOH since he didn't pay rent, but showed us how to properly document that he still qualified to claim his daughter as a dependent. They also helped us request first-time penalty abatement since this was his first mistake. The response we prepared with their help was accepted by the IRS. We still owed additional tax, but the penalty was waived and we didn't lose the dependent deduction. Worth every penny during such a stressful situation!

After going through a similar audit nightmare last year, I finally got desperate enough to try https://claimyr.com to actually speak with someone at the IRS. I'd been calling the audit department for WEEKS with no luck - constant busy signals or "call back later" messages. With Claimyr, I actually got through to a real person at the IRS in less than 2 hours. Check out how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with explained that Head of Household misunderstandings happen ALL THE TIME, especially with shared custody situations. They walked me through exactly what I needed to send in and even noted on my account that I was cooperating fully with the audit.

Need to eat my words here. After posting my skeptical comment, I decided to try Claimyr myself for an audit issue I've been dealing with. I'd called the IRS 14 times over two weeks with no luck. I used the service yesterday, and they got me connected to an IRS representative in about 90 minutes. The agent was actually super helpful once I explained my situation (similar HOH issue but with my nephew I'm raising). The IRS person explained that I could still claim my nephew as a dependent even though my HOH status was being denied. They even helped me calculate what I would owe under the correct filing status so I could be prepared. Definitely saved me weeks of stress trying to get through on my own. Sometimes it's worth admitting when you're wrong!

Just a quick reminder that TurboTax and other tax software can only work with the information you give them - they don't verify if you actually meet all the requirements! I'm a volunteer tax preparer and see this HOH mistake a lot. For anyone reading this who lives with parents/relatives and wants to claim HOH: - You MUST pay more than half the household expenses (rent/mortgage, utilities, etc.) - Just buying groceries and personal items for yourself and your child isn't enough - Keep receipts and proof of payment for everything household-related - If your name isn't on bills/lease, get documentation of what you pay to the homeowner The software doesn't know if you're paying rent or not - it just asks if you "maintain a home" for you and a qualifying person.

Anyone know what kind of penalties might be involved here? I'm in a similar situation and freaking out about potentially owing thousands.

I went through this exact same situation two years ago - claimed HOH while living with my parents rent-free and got audited. It's stressful but definitely manageable if you handle it right. The most important thing is to respond to the audit notice promptly and be completely honest about the situation. Don't try to create fake receipts or claim you paid expenses you didn't actually pay - the IRS can verify these things and it'll only make things worse. When I responded to my audit, I explained that I misunderstood the HOH requirements and thought that just supporting my child qualified me. I included documentation showing all the legitimate expenses I paid for my son (school supplies, medical bills, clothing, etc.) to demonstrate that I was genuinely supporting him, even though I couldn't qualify for HOH. The IRS accepted my explanation, I filed an amended return changing to Single status, and I was able to keep my dependent deduction. I did owe about $800 more in taxes plus some interest, but they waived the penalties since it was my first mistake and I cooperated fully. The key is showing good faith - admit the error, provide documentation of what you did pay for your daughter, and emphasize that this was an honest misunderstanding of complex tax rules. Most IRS agents are reasonable when you're upfront with them.