Tax Tips for Single Mothers
Tax time can be really stressful when it comes to single mothers. Luckily, there are tons of great ways that single mothers can save money on their taxes each year! Some of them are common sense , while other things can require just a little knowledge on different tax matters. With just a small amount of effort on the single mothers behalf, they can take advantage of each of the tax benefits at no extra cost to them. There are a couple of choices that single mothers can consider changes in order to help her out more when it comes to filing their taxes.
One of them, is to increase the number of exemptions she claims. This is something that must be done with her employer and through the use of W-4 form. If the single mother wants to have less taxes taken out of her paycheck each pay cycle, then she will need to increase the number of exemptions. A single mother can only claim herself and her child or children. By changing the exemptions, the mother will have more income coming in each week, creating less of a cash crunch throughout the year. This needs to be though through, because at the end of year at tax time, this can affect how much of a tax return the mother will be getting back. The total tends to be somewhat less.
Single mothers should always claim earned income credit if their income is below $32,000 for the year. This is a credit that is based on your income and how many children you have. Should have one child, it would be around $3,000 and if you have two children it would be around $6,000. The total mount that a single mother is eligible for would be given in the form of a refund at the end of the year during tax refund season.
Most single mothers need to have child care in order to work and support their family. Often times the single mother pays someone to care for her children and the money paid can be considered deductible on their taxes. If you are using a legal child care center, you should receive a statement at the end of each year to use for tax purposes. This can be a great tax deduction for single mothers and help them increase the amount of their tax return for the year.
Single mothers tend to have it very hard when it comes to taking care of their families and the more help they can get, the better. You may be able to qualify for even more of a tax return and this needs to be discussed with a tax professional that knows how to help single mothers. This is only a sampling of tax tips for single mothers, try looking for information online or speaking with a qualified tax professional.