Tips For Filing Taxes As A Single Parent

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

It's certainly not unusual to get confused when it comes to filing status - there are so many different options and variations of those options that it can be hard to keep up with what's what. But as your family financial planner, we're here to clarify anything that may not make sense at first, starting with three things that single parents need to know when filing:

Head of household: It may seem obvious to list your filing status as "single," but when you file as "head of household" instead, you put yourself in a position that may offer more benefits. Overall, you're likely to pay less in taxes when you file this way, and you might even be able to claim higher deductions. If you were not married on the last day of the previous year, had children who lived with you for six months or more, and were able to provide more than 50% of the income needed to support your home, you're eligible to file this way.

Claiming dependents: According to the IRS, a child is considered a dependent if they lived with you for at least six months of the year and were financially supported by you during that time. Depending on the custodial agreement you have with your child's mother or father, you may be the one to claim them every year, or, you might be on an alternating yearly schedule. If it's your turn to claim your child, make sure you do so that you become eligible for more credits and deductions.

Child care credits: If you are working and earn an income or are a full-time student who requires someone or a program (such as an after school program or camp) to look after your child, claim the child care credit. In order to be eligible, your child must be younger than 13 years of age, and if it's a person who watches your child rather than a program, that person may not be their other parent. 

Running a home and caring for a child or number of children can be a difficult task for any one individual, so there's no need to put any more stress on yourself come tax time - that's what we're here for. The team at American Investment Planners LLC has experienced many of the same situations our clients have, so we know exactly what solutions to offer.

For more information about our tax planning services, please visit us on our website or give us a call at (516) 932-5130.