Tax Breaks For Single Moms
Tax breaks can be found for anyone and this can save you a great deal of money, including single moms. By researching specific tax breaks for single moms, you can get more money back on your income tax and pay less in taxes in general. This can give you the ability to spend more money on your children and possibly even take a vacation or do something else special for your children with your tax refund. What are some of the tax breaks and hints that you should take into consideration?
File your return as “Head of Household.”:
This will decrease the amount of taxes that you have to pay and it will be able to claim a higher standard deduction. If you were single at the end of the tax year, had custody of your children more than 50% of the year, and provided more than half of the income to take care of household, you are able to file as the head of your household.
Take your exemptions for your dependents:
You get exemptions for yourself, as well as each child that you have, which can decrease your tax responsibilities. If you share custody, you will need to discuss with your ex who will claim the kids on their income tax, as both parents cannot claim all of their children on two separate returns.
Child care tax credits are available if you pay someone to take care of your child while you are working. This is only for children that are under the age of 13 for part of the year. This tax credit can reimburse you for part of your child care expenses to allow you to have a lower tax responsibility and possibly get a bigger refund back.
Another credit that you want to make sure that you take advantage of is the child tax credit. This is based on each child and can be a credit of $1000 per child. This adds up quickly to give you maximum benefit to the amount of taxes that you have to pay.
If you meet the requirements, you may also get the Earned Income Tax Credit. This credit is based on income, but even if you did not earn enough money to have any taxes paid, you can still get a refund through this tax credit. Your tax professional will be able to help you determine if you meet the qualifications for this credit.
By taking advantage of all of these credits and other deductions that you can find, you can decrease the amount of taxes that you will be responsible for and hopefully increase your income tax refund. This can allow you to have extra money to take your kids on a fun vacation, pay bills, or take care of other financial obligations. Don’t pay more taxes than you have to. Take advantage of tax credits that work for a single mom to help you to take care of your children the way that you want and need to.