Tax Credits For Single Mothers

Tax Credits For Single Mothers

Child Care Credit

For all of you single mothers who pay someone to watch a child or multiple, you can get up to $3,000 per child each year in tax deductions, which is known as Child Care Credit and/or Child and Dependant Care Expenses. In order for single mothers to take advantage of this tax credit for single mothers they must have worked and earned income as well as when filling out an income tax return mothers must write the tax ID number of their person who is providing childcare for their children.  Children who are receiving childcare must be 13 years of age or younger in order for single mothers to qualify for tax credits.

File As “Head of the Household”

Tax deductions for single mothers can also be enjoyed immensely by filing as the Head of the Household. In order to use this single mother tax credit you must one, separated from your spouse for a minimum of 6 months, and two you must have custody of your children, and three you must have paid for a minimum of 50 percent of the amount of money needed to pay for your home and all its necessities. (It is important to note that only one parent can claim a child(ren) as a dependent and enjoy the tax benefit, so it is important to discuss this.)

Owning A Business

Not only can starting a home based business be able to open up your schedule enabling you to be able to create your own schedule and allow you to open up much more time with your little ones, it can also come with great tax credits for single mothers. It is important to remember that if you start your own business and want to enjoy the tax write-offs, always keep records of your revenue and expenses. Some of the many tax write-offs that come with owning your own business include:

  • Office space, and business supplies. This can include learning seminars as well, or pretty much anything that will provide value to your business.
  • Utilities.
  • Rent & Mortage.
  • Start Up Fees.
  • Gas – Every time you leave your home and go out to buy something for your business or do an errand, you can write off the expense it took in the amount of gas you paid for to take the trip to and from your house.

Earned Income Credit

You can also qualify for Earned House Income if you happen to have low income, which you can get over $4,000 per year if you are a qualifying applicant. In order to utilize this tax credit for single mothers method, your children need to be under the age of 19 and have been living at your residence for a minimum of the last 6 months, and the total amount of income you are investing must not total higher than $2,650.

It is also important to remember that every child can equate to up to $1000 in tax credit, in the form of whatever amount you qualify for, that amount will be taken off the total amount you pay per year in taxes. So as you can tell, you can qualify for great tax credits for single mothers each year, which you can use multiple different methods mentioned above which will allow you to enjoy much-needed relief when it comes time to file, which instead of dreading it, things can now work in your favor ever year!