axpayers may be eligible for several tax deductions and credits that could substantially increase their tax refunds this year. If you are a single mom or a single dad, read these tax tips for single parents to see how you could boost your tax refund!
1. Make Use of the Head of Household Filing Status
If you're providing at least half of the financial support for a qualifying child, you may be eligible to use the head of household filing status on your tax return. The IRS provides a larger standard deduction for those who use the head of household than for those who use the single filing status.
As a result, using the head of household filing status can reduce the amount of tax you pay this year. In order to use the head of household filing status, you have to be single on the last day of the year, provide at least half of the household's support, and have your dependent child live with you for more than half of the year.
2. Claim the Child Tax Credit, If Possible
The Child Tax Credit allows parents to claim up to $1,000 of tax credit for each qualifying child aged 17 and younger they support. Since the Child Tax Credit is used to reduce tax owed, it can have an even greater impact on your return than a tax deduction. While the Child Tax Credit is not refundable on its own, you may be able to receive any excess credit as a refund using the Additional Child Tax Credit if you meet certain income guidelines.
3. Write off Your Childcare Expenses
Many single parents make use of childcare services such as nannies, day cares, and summer camps. If you use one of these caregivers or programs to provide childcare while you are working or looking for work, you may be able to claim your childcare expenses using the Child and Dependent Care Credit. Since this option is a tax credit, it also reduces the amount of tax you owe directly.
To claim the Child and Dependent Care Credit, your child must be aged 12 or younger and you must be eligible to claim the child as your dependent. In addition, the IRS limits the amount of qualifying expenses to $3,000 per year for one child and $6,000 per year for two children or more.
If you're raising children as a single parent, take special note of these tax tips for single parents. If you qualify to use the Head of Household filing status, the Child Tax Credit, and the Child and Dependent Care Credit, you may find that your tax refund this year will be your biggest one yet!
