Tax Breaks for Single Parents

Raising children can yield a joyful and rewarding experience. It can be challenging, but it’s also one of the most enjoyable aspects of adulthood – what’s even more difficult is raising a child or children as a single parent, which the responsibility of day-to-day child care falls on one person.
For those of you in need, there are assistance programs for single parents. One of these programs comes in the form of various tax credits that are available to claim. Here are five tax breaks eligible for single parents.

Head of Household Status
Typically, a single parent should file as head of household – not only will the status open up child-related tax deductions, but also lower your income tax bracket and increase the standard deduction amount.

If you’re a single parent due to death of a spouse, you can still file a joint tax return for the year your spouse passed, which still gives you the benefits of a married couple. Afterward, you could earn eligibility as a widower with a dependent child.

Dependent Claims

To claim your child as a dependent, the little one must meet the five dependent child test established by the IRS, which includes

  • Age
  • Support
  • Residency
  • Joint Return
  • Relationship

A dependent claim adds an exemption that slices your gross earnings into a lower level of taxable income.

Child Tax Credit
One of the easiest tax credits is this $1,000 deduction for any dependent child you have under the age of 17. With three or more kids, you might be able to reduce your entire tax bill and even claim a refund.

Flexible Spending Accounts
Both single and coupled parents can take advantage of flexible spending accounts, if available with their employer. With this account, you can save a pre-tax amount of $5,000 to cover child care expenses.You can also claim the Child and Dependent Care Credit, which deducts directly from your tax bill for paying someone to watch your child while you’re at work.

You can find more information in our informative blog: Summer Tax Tips for Child Care

Earned Income Tax Credit
This particular deduction can help with a great variety of child expenses. Back in 1975, it was made for low-income workers to compensate Social Security taxes taken from their paychecks. Because it directly subtracts from your tax bill, the more credit you receive – the more you can claim a possible refund.

Remember to discuss your unique tax situation with a tax professional before attempting these general deductions – everyone is different. And don’t forget to visit us here at to e-file IRS Form 4868 and automatically get six extra months to file your personal tax return.

Your friendly, U.S. -based e-file experts are here in Rock Hill, South Carolina for any questions or assistance needed with the e-filing process. We’re excited to hear from you at 803.514.5155, Monday through Friday from 9 a.m. to 6 p.m. EST. You can also reach us through “the Net” with [email protected] – our 24/7 email service.

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