I have a soft spot for single moms, as I was raised by one. If you ask me, single moms are right up there with the best of superheroes. In addition to being mom and dad, they hold down and businesses, while keeping a roof over their heads and raising kids on their own. Which means they also can be under financial pressure as they strive to bear the financial burden of being a single parent. This is where single moms can use tax credits and deductions to help…
If you’re a single mom, you know all too well what the financial burden of raising kids on your own is. What you also must know is that you have access to tax tools and tips to ease the weight. Here are 4 things you must know when filing your taxes:
- You might want to file as head of household
As a single mom, you can get a lower tax rate by picking the head of household filing status rather than filing single or married. The head of household filing status requires you to be unmarried as of the last day of the tax year. Another condition to file under this status is that your children must live with you for more than 6 months of the year. Additionally, you must pay more than 50% of the expenses to support your home.
- You must show that your children qualify as dependents
In order to get tax credits and deductions related to your children, you must show that they qualify as dependents. If your child resides with you, you may be able to claim him/her as such, according to the IRS’ custodial residency test.
However, the father may be able to claim the child as a dependent even if said child does not reside with him if:
- The child’s father and yourself are legally separated or divorced, or you lived separately for the last 6 months of the year
- The child’s father and you have legal custody of said child
- Half of the support of the child was provided by the parents for at least 6 months of the year
- You provide a written agreement not to claim the child as a dependent or there is a legal agreement made before 1984 allowing the father to claim the child as a dependent.
All the above conditions must apply for the child’s father to claim the child as a dependent.
- You can deduct your childcare expenses…
Is your dependent child 12 years or older? Do you pay for daycare so you can go to work or look for a job? Do you have an income, are a full-time student, or are unable to care for yourself? In this case, if you answer yes to all these questions, you may be able to claim the childcare tax credit, as long the care provider is over 19 years old, is not the child’s parent, and is shown on your tax return. However, if your employer helped pay for any of these expenses, their contribution must be deducted from your expenses.
- Don’t forget to include the child tax credit
After 2017, if you’re a single mom filing as head of household and you make less than $75,000, you can now claim a child tax credit of $2,000 for each child. This amount used to be $1,000 for tax years before 2018. However, this credit caps at incomes of $200,000 and beyond for single or head of household filers.
Keep in mind that your child must be 16 years old or younger to qualify. He/she must eb your dependent and can be your son, daughter, brother, sister, stepchild, stepbrother, stepsister, niece, nephew, grandchild, or legally adopted. Additionally, he/she must have resided with you for at least 6 months, be a US citizen, US national or resident alien. Lastly, he/she must have received more than half of his/her support from you.
Are you a single mom filing taxes this year?
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