IRS Audit Triggers for HOH Filers
What raises red flags and how to protect yourself
🎯 Audit Reality Check
- • Overall audit rate: ~0.4% (4 in 1,000 returns)
- • Income $200k+: ~1% audit rate
- • HOH-specific: IRS scrutinizes HOH claims more closely
- • Most audits: Handled by mail (correspondence audit)
- • Key message: If legitimate, don't fear audit. Just keep good records.
Top 10 HOH Audit Triggers
1. Filing HOH While Married
Red Flag: IRS computers cross-reference your status with spouse's return. If spouse files MFJ and you file HOH, immediate flag.
How to Avoid: Only claim HOH if truly unmarried or meet "considered unmarried" test (lived apart 6+ months, paid >50% home costs, qualifying child lived with you).
2. Same Dependent Claimed by Multiple People
Red Flag: Both parents claim same child for HOH. IRS catches this instantly.
How to Avoid: Only custodial parent (where child lived >50% of year) claims HOH. If alternating years per divorce agreement, document it clearly.
3. No Qualifying Person's SSN
Red Flag: Claiming HOH but dependent has no SSN, invalid SSN, or ITIN (Individual Taxpayer ID).
How to Avoid: Ensure all dependents have valid Social Security Numbers. Apply for SSN before filing.
4. Excessive Earned Income Credit (EIC)
Red Flag: HOH + EIC combination is heavily audited due to high fraud rate. IRS may request proof child lived with you.
How to Avoid: Keep school records, medical records, childcare statements showing child's address matches yours for >50% of year.
5. Switching Between HOH and Single Frequently
Red Flag: Filing HOH one year, Single the next, back to HOH. Looks like you're gaming the system.
How to Avoid: Document legitimate changes (custody arrangement changed, parent moved in/out, etc.).
6. High Income with HOH Status
Red Flag: Income $200k+ and claiming HOH. IRS assumes high earners are more likely to be married.
How to Avoid: Ensure all requirements met. High earners get extra scrutiny, so documentation must be airtight.
7. Claiming Non-Biological Relatives
Red Flag: Claiming adult sibling, parent, or unrelated person as qualifying dependent.
How to Avoid: Document they lived with you full year (12 months), you paid >50% support, their income under $4,700, they can't be claimed by anyone else.
8. Child Over Age 19 (Not Full-Time Student)
Red Flag: Claiming 22-year-old who didn't attend school. IRS questions if they qualify.
How to Avoid: Child under 19 = automatic qualifier. Age 19-24 must be full-time student. Over 24 = must be permanently disabled.
9. Excessive Deductions or Credits
Red Flag: HOH + large charitable deduction + business loss + rental loss = audit likelihood increases.
How to Avoid: Every deduction must have documentation. Don't exaggerate. Legitimate deductions are fine.
10. Math Errors or Inconsistencies
Red Flag: Standard deduction doesn't match filing status, calculated tax wrong, income doesn't match W-2s.
How to Avoid: Use tax software or professional preparer. Double-check all numbers before filing.
Documents to Keep (In Case of Audit)
Proving Qualifying Person
- ✓ School records with your address
- ✓ Medical/dental records showing child's address
- ✓ Childcare provider statements
- ✓ Birth certificate or adoption papers
- ✓ Social Security card (valid SSN)
- ✓ Court documents (custody agreement)
- ✓ Letter from school showing enrollment
Proving You Paid >50% Costs
- ✓ Rent receipts or lease agreement
- ✓ Mortgage statements
- ✓ Utility bills in your name
- ✓ Grocery receipts
- ✓ Property tax statements
- ✓ Home repair receipts
- ✓ Bank statements showing payments
Keep records for 3 years from filing date (7 years if major audit concerns).
🚨 Automatic IRS Computer Flags
IRS computers automatically flag these situations:
- • Duplicate SSN: Same dependent claimed on 2+ returns
- • Invalid SSN: SSN doesn't exist in Social Security database
- • Mismatched filing status: You claim HOH, spouse claims MFJ with you
- • Income mismatch: W-2 income doesn't match what you reported
- • Refund abnormally high: Requesting $10k+ refund on low income
- • Previous audit adjustments: Filed HOH before, IRS disallowed it, you're claiming again
If You Get Audited: What to Expect
Correspondence Audit (90% of audits)
- IRS sends letter (CP75 or similar) asking to prove HOH eligibility
- You have 30 days to respond with documentation
- Send copies (not originals) via certified mail
- IRS reviews and either accepts or denies HOH status
- If denied, you owe additional tax + interest + potential penalties
Office/Field Audit (rare)
Meet with IRS auditor in person. They'll review all documentation. Bring: proof of residency, custody documents, financial records showing you paid >50% household costs.
💡 Audit Prevention Best Practices
1. E-File Your Return
E-filed returns have built-in error checking. Paper returns have 21% error rate vs 0.5% for e-file.
2. Use Tax Software or Professional
Software asks questions to verify HOH eligibility. Professional preparer adds credibility.
3. Attach Form 886-H-HOH
Optional form explaining HOH qualification. Proactively showing you understand rules reduces audit risk.
4. Be Consistent Year-to-Year
If circumstances don't change, maintain same filing status. Switching raises questions.
5. Don't Round Numbers Excessively
Every deduction exactly $100, $500, $1,000? Looks made up. Use actual amounts from receipts.
6. File On Time
Late returns get extra scrutiny. File by April 15 or request extension (October 15).
7. Respond Promptly to IRS Letters
Ignoring IRS correspondence leads to automatic assessment. Always respond within 30 days.
What Happens If HOH Is Disallowed?
Tax Recalculated as Single:
IRS recomputes your tax using Single status (lower standard deduction, higher tax rates).
Additional Tax Owed:
Typically $1,000-$3,000+ depending on income.
Interest:
Charged from original due date at ~7% annually (compounded daily).
Accuracy-Related Penalty (20%):
If IRS determines you were negligent or substantially understated tax. Can be waived if reasonable cause.
Ban on EIC (if fraudulent):
If IRS determines fraud, you're banned from claiming EIC for 2-10 years.
Total cost: Additional tax + 20% penalty + interest can equal 30-50% increase in tax bill!
📞 When to Get Professional Help
Consider hiring a tax professional or Enrolled Agent if:
- ✓ You receive an audit notice
- ✓ Your situation is complex (considered unmarried, supporting parent, etc.)
- ✓ You previously had HOH disallowed
- ✓ Other parent is fighting over who claims child
- ✓ You have multiple dependents with different custody arrangements
Cost: $200-$500 for audit representation. Worth it to avoid $3,000+ in additional taxes.