Tax Breaks Single Parents Should Know About




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Tax season is here and whether you are doing your taxes yourself or paying someone else to do it, you should know what tax credits and breaks you are eligible for as a single parent. They can lower the amount of taxes you owe or even help you get some money back. Check out these  tax breaks you should know about:

Child Tax Credit

You qualify for this credit if you have a dependent child under the age of 17. It is only partially refundable; what you receive cannot exceed 15% of your income over $3,000.

Additional Child Tax Credit

If you do not receive a full Child Tax Credit, you may qualify for an Additional Child Tax Credit. This credit is fully refundable.

Earned Income Tax Credit

This tax credit is for working individuals with low to moderate income, but provides additional credit per child. A single person will receive up to $3,305 if they have one child, $5,460 for two children, and $6,143 for the or more children. It is refundable.

Child and Dependent Care Credit

This provides a nonrefundable tax credit for the cost of childcare for children up to 13. You can claim up to $3,000 of yearly childcare expenses per child or $6,000 per family. Filing as Head of Household boosts this credit.

File as Head of Household

If you are the custodial parent, the child has lived with you for at least 6 months of the year and the other parent has not lived with you for 6 months of the year, you can file as Head of Household instead of Single.

American Opportunity Credit

You can receive this tax credit for the first four years that your child is in college. It is refundable and you can earn up to $2,500.

Lifetime Learning Credit

You can receive this nonrefundable credit for more than the first four years that your child is in college. There is no limit on the number of years. You can earn up to $2,000.

Dependent Exemptions

This is the most widely known tax perk of being a parent. You receive $3,950 for each child up to 19 years of age, or 24 if they are a full time student. You can also claim an exemption for yourself.

These credits and exemptions can save you thousands of dollars in taxes. If you are having someone else do your taxes, make sure to ask them about all of these so that you don’t miss out on any of money.

 

By: Alecia Stanton




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