In our last post, we began a discussion about tax complications that can arise after a divorce or child custody case. Perhaps you have filed taxes the same way for years and now have questions about deductions, dependent credits and other issues. Perhaps you are not used to filing taxes on your own because your spouse always took care of financial matters.
In today’s post, we’ll continue the conversation about how your taxes may change this year if you have gone through a significant change in family structure and/or living arrangements.
If you have head of household status (which we discussed in the last post) you may also be able to deduct child care expenses, including after-school programs and summer day camps. Depending on your income and work status, you may be able to claim up to $3,000 for a single child or double that amount if you have two or more children. You should double check that the child care you used qualifies for the deductions.
Do you have three or more children? Did you earn less than $46,997 last year? If you’re a single parent meeting these criteria, you likely qualify for the Earned Income Tax Credit.
Did you have an adjusted gross income of $75,000 or less last year? As a single parent, you may be entitled to a tax deduction of $1,000 for each dependent child you have under age 16.
There are several other deductions and credits that we did not mention in these two posts. Suffice it to say that if you have gone through a change in marital status or child custody in the past year, your taxes could be quite different than you’re used to. It may be worth hiring a professional to help you understand tax liabilities and help you take advantage of any and all tax credits/deductions.
Source: Forbes, “8 Things Single Moms And Dads Need To Know About Taxes,” Emma Johnson, Jan. 26, 2015