Alexis Valdez, 18, was ordered held without bail, the Chicago Tribune reported. He was charged with the first-degree murder of Silvestre Diaz-Hernandez, 41.
Kingsley Sawyers, a Cook County assistant state's attorney, said Valdez called police early Christmas morning and reported a dead body, saying the head had been cut off.
Sawyers said Valdez planned the killing, leaving a hammer concealed when he and Diaz-Hernandez went out to buy beer. Valdez allegedly killed Diaz-Hernandez and then mutilated the head and cut it off along with one arm.
Valdez allegedly told police he left the head, ears and nose on his aunt's bed because he wanted "to leave her a present."
Investigators said the aunt had told Valdez he had to move because he was not making any contribution to expenses.