Wednesday, June 8, 2011

tax issues...what you can do

Tax Filing Considerations Single Dads

Filling out tax forms has become more complex over the years and if you have recently become a single parent, it is a good idea to seek professional advice to determine what deductions or credits you are now eligible for. Below is a short list of tax considerations for single parents:
1 -Head of Household – If your child lived with you for over 50% of the year or you contributed over 50% to the maintenance of your household and you meet all other requirements defined by the IRS, you'll be able to claim a higher standard deduction and pay less taxes.
2 – Dependent Exemption – If you are eligible to file as Head of Household, you may claim an exemption for yourself as well as each qualifying child. In some cases, parents share custody equally and will need to determine which parent will claim the exemption for their child. In some cases, the parents alternate years.
3 -Child Tax Credit – For you to be able to take this credit, your child must meet certain requirements such as being under seventeen years of age on the last day of the year.
4 - Child Care Credit – If you had to hire someone to watch your child while you were working or looking for a job, you may be eligible for Child and Dependent Care Expenses.
5 - Earned Income Tax Credit - This credit is available to low-income, working families.

No comments:

Post a Comment