Originally Answered: Skipping a grade for homeschool? Starting first grade early?
In homeschooling, you can place your child wherever they need to be - it doesn't matter a bit where the schools would place them. The logistical restrictions that exist in a school have nothing to do with a homeschool.
Take my son, for example - we started homeschooling when he was 6.5, at his request. He had attended an accelerated private school for P4-K, and was halfway through 2nd grade coursework upon completion of the K program. When we moved and started homeschooling, I started him out in 2nd grade coursework. From there, I've let him progress according to his abilities.
Now, having just turned 10, his coursework ranges from 5th-6th to 9th grade, depending on the subject. He's dyslexic, so his spelling is at grade level. He reads award-winning (Newbery, etc.) and classic literature like CS Lewis and Tolkien, and writes at about an 8th-9th grade level (stories and research papers).
He takes Latin and Spanish, which are at about a 6th grade level. His grammar tracks right along with it.
In math, he's in a first-year algebra program, and he's getting ready to start a 7th grade science text. For history and geography, he's at about a 6th-7th grade level.
I tell him he's finishing up 5th grade, as that's the class that he attends at church. It's also easier for him to answer "5th grade" when someone asks, rather than responding with "which subject do you mean?" :-)
In homeschooling, you tell your child they're in whichever grade is appropriate for their other activities (church, Scouts, sports, etc.) and give them work on their individual level.
Hope that helps!
Edit - I'm not sure which state you live in? Each state requires varying degrees of paperwork. I would state that she's in whichever grade her age correlates to, and only give the info they absolutely have to have - only a few states require anything detailed. Basically, give them enough to satisfy them, keep it simple as far as they're concerned, and do whatever she's ready for. If you have to do an evaluation, just keep samples of whatever she does during the year. If she's above grade level, they won't have a problem with it; it's when she's below grade level (unless there's a disability or learning glitch involved) that you would have to submit anything else.
If she's not yet at mandatory schooling age (few states require it at 5, most are 6 or 7), you don't have to report anything. Do what she's ready for and call it kindergarten, it's perfectly ok to have her doing 2nd or 3rd grade work the following year and tell the district it's 1st grade. Honestly, my son will likely be doing college work by the time he's 15, but I'll still count it as 10th grade. I'll just set down different objectives and standards for him than the state would. Because his dad and I will be awarding his diploma, we're allowed to set his course of study and determine when he's completed it.
I would also suggest getting in touch with some local homeschooling groups to pick the brains of some veteran homeschool moms. It sounds like you live in a fairly picky state, and they'll know the details of how to work with the district in this situation.