tax tips for single moms

Tax Tips for Single MomsHere are some tax tips for single moms!

File as Head of HouseholdFile as head of household to get a lower tax rate. This status also allows a higher standard deduction. To qualify for head of household status, you must be unmarried on the last day of the tax year. You also must contribute more than 50 percent toward the financial support of your home, and your children must live with you for more than six months of the year.

Establish Qualifying DependentsThere are conditions that determine if you can claim your child as a dependent. The IRS uses the custodial residency test in most cases to determine if you can claim your child as a dependent. 

Claim the Dependent ExemptionThe IRS allows a tax exemption to reduce the burden of caring for a child. Depending upon the tax bracket, claiming an exemption for each child can greatly reduce a single mom’s taxable income and in some cases, give a bigger tax refund. However, once a single mother’s adjusted gross income exceeds a certain amount, the deduction is phased out.

 The Child Tax CreditA single mom filing as head of household and making less than $75,000 as of tax year 2015, can claim a $1,000 child tax credit for each child. This amount comes off your tax bill. If you owe less than the child tax credit, you’ll receive the balance as a refund.

Deduct Childcare ExpensesIf your dependent child is 12 years old or younger, and you pay for daycare while you work or look for work, you may be eligible for a childcare tax credit.

To Learn More Visit

www.reliancetaxgroup.com Or Call :

(877) 597-0153

“5 Tax Tips for Single Moms.” Intuit TurboTax. Intuit, Inc. 2016. Web. 25 April 2016. <https://turbotax.intuit.com/tax-tools/tax-tips/General-Tax-Tips/5-Tax-Tips-for-Single-Moms/INF26172.html>