Being a single parent is challenging yet very task; a nonstop balancing act if you will. Now add the task of trying to navigate the complicated tax filing process, this has the potential to be a very stressful time for mom or dad. So in an attempt to alleviate some of the tensions tax filing season may cause we have listed some deductions for single parents that may apply to you:
Child Care Credit:
If someone else cared for your child so that you could either work or look for work, you may be eligible for Child and Dependent Care Expenses. However to be able to qualify for this deduction there are few requirements, your child must be under 13. Secondly, the person taking care of your child can’t be the child’s other parent or anyone who can claim you as a dependent. Lastly, you must have earned an income during the year.
Head of Household:
Filing for this status has two benefits for single parents. Firstly, you’ll pay fewer taxes overall; and secondly, you’ll also be able to claim a higher standard deduction. In order to qualify for this you must have provided more than 50% of the financial support needed to maintain your household and your children lived with you for more than half the year.
Single parents who file as Head of Household for 2012 will be able to claim an exemption of $3,800 for themselves and each qualifying child. This means that for each exemption, $3,800 of your income would not be taxed. Keep in mind, though, that only one parent can claim each child as a dependent for tax purposes.