How do I file 2 diffferent tax returns for an unmarried couple with children?

[caroljo]

I have an unmarried couple who live together.  In the past the man earned the most money, filed head of household  and claimed their 2 children.  The woman filed as single.  In 2021 the woman made more money so she should file as head of household and take the 2 kids as dependents.  My problem comes because the man received the stimulus payments and the advanced child tax credit.  Both their incomes qualify for the EIC.  It seems like they would be double dipping if I give the woman the kids in 2021.  

[rcooley25]

It might be double dipping but as I see it legal. If someone receives stimulas money that they should not have they do not have to pay it back.

[sjrcpa]

But they may have to pay back some or all of the advance child tax credit, depending on their income.

[BobKamman]

I don't see the connection between making more money and paying more than half the household expenses.  When IRS sees the same address on two returns that flip filing status, they may not see the connection either.  

[BobKamman · Accepted solution]

Maybe their paychecks go into the same bank account, and all the household expenses come out of that account.  And there are no other funds going into that account, except how about those tax refunds and EIPs?  Some couples get married but bank separately.  Have to figure that some couples don't marry but bank jointly.  But details would help.  

[caroljo]

They each have their own checking accounts.  Neither of them make much money.  Both of them qualify for the EIC.  You know, after reading your reply, I guess he would have had more money because he got the ACTC and the Stimulus payment for him and the 2 kids.  That would have put him in the Head of Household area.  Thank you...that makes a difference.  

[qbteachmt]

"They each have their own checking accounts."

Where is it stated that the person making the most money is HOH, by definition? Did you confirm HOH status using the IRS:

https://www.irs.gov/faqs/filing-requirements-status-dependents/filing-status

https://www.irs.gov/help/ita