I am divorced and recently just moved back in with my ex-husband and two kids, can we both file head of household?

Not for 2007. One of your kids HAS to live with you for over six months.

Further, you have to provide OVER HALF of the cost of keeping up the household. You BOTH cannot provide over half.

You may be able to file as head of household if you meet all the following requirements.
*You are unmarried or "considered unmarried" on the last day of the year.
*You paid more than half the cost of keeping up a home for the year.
*A "qualifying person" lived with you in the home for more than half the year (except for temporary absences, such as school). However, if the "qualifying person" is your dependent parent, he or she does not have to live with you.

Since the two kids are living with your ex-husband, he qualifies as Head of Household. Your filing status is Single; you don't have a "qualifying person".

Birdie1:

I answered your PM.

Good luck with your new domestic situation!