TurboTax / Tax Calculators & Tips / All Tax Guides / Taxes 101 / 5 Tax Tips for Single Moms

5 Tax Tips for Single Moms

Updated for Tax Year 2014


OVERVIEW

If you're a single mom filing your taxes, make use of tax credits and deductions that can help reduce your taxable income and reduce the amount of tax you pay. A number of strategies, credits and deductions can be used to reduce taxable income, and in some cases, allow tax refunds even if you didn't pay in any taxes. When you use TurboTax, we'll ask simple questions and handle these calculations for you.


Get every deduction you deserve

TurboTax Deluxe searches more than 350 tax deductions and credits so you get your maximum refund, guaranteed.

For only $54.99$34.99*
Start for Free

File as head of household

Filing as head of household usually gives you a lower tax rate than if you file as single or married filing separately. It also allows a higher standard deduction. To qualify for head of household status, you must be unmarried on the last day of the tax year. You also must contribute more than 50 percent toward the financial support of your home, and your children must live with you for more than six months of the year. TurboTax can help you determine if you qualify for head of household status.

tax tips for single moms

Establish qualifying dependents

There are conditions that determine if you can claim your child as a dependent. The Internal Revenue Service uses the custodial residency test, in most cases, to determine if you can claim your child as a dependent. However, if there’s a non-custodial father, the IRS can grant him the right to claim your child as a dependent if all these conditions apply:

  • You and your child’s father, whether married or not, lived apart for the last six months or are legally divorced or separated.
  • The child received at least half of his support from the parents for at least half of the year.
  • You and/or the child's father have legal custody of him.
  • Either you provide a written waiver to not claim the child as your dependent or a pre-1984 legal agreement exists that allows the non-custodial father to claim the child as a dependent.

Claim the dependent exemption

The IRS allows a tax exemption to reduce the burden of caring for a child. “This can be a big plus for single moms,” advises Bill Symons, president of Computer Accounting Systems in Oswego, N.Y. “Claiming an exemption for each child can greatly reduce a single mom’s taxable income and in some cases, depending on her tax bracket, give her a bigger tax refund.” However, once a single mother’s adjusted gross income exceeds a certain amount, the deduction is phased out.

Include the child tax credit

A single mom filing as head of household and making less than $75,000 as of publication, can claim a $1,000 child tax credit for each child. This amount comes off your tax bill. If you owe less than the child tax credit, you’ll receive the balance as a refund. To qualify, the child must:

  • Be 16 years old or younger and be your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, grandchild, niece, nephew or a legally adopted child
  • Have lived with you for more than six months
  • Be a United States citizen, U.S. national or U.S. resident alien
  • Be your dependent
  • Have received more than half of their support from you

Deduct childcare expenses

If your dependent child is 12 years old or younger, and you pay for daycare while you work or look for work, you may be eligible for a childcare tax credit. To qualify you must have an income, be a full-time student, or be physically or mentally unable to care for yourself. The care provider must be older than 19 years of age, can’t be a parent of the qualifying child, and must be identified on your return. Depending on your income, the credit can be up to 35 percent of childcare costs. Any contributions to childcare expenses from an employer must be deducted from the total expense.

The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.

* Important Offer Details and Disclosures
  • Try for Free/Pay When You File: TurboTax online and mobile pricing is based on your tax situation and varies by product. Actual prices are determined at the time of print or efile and are subject to change without notice. Special discount offers may not be valid for mobile in-app purchases.
  • TurboTax CD/Download products: Price includes tax preparation and printing of federal tax returns and free federal efile of up to 5 federal tax returns. Additional fees apply for efiling state returns. E-file fees do not apply to New York state returns. Prices subject to change without notice.
  • TurboTax Mobile: Actual prices are determined at the time of print or efile and are subject to change without notice. Come back here before you file to confirm that the price has not changed, especially if it's been a while since you downloaded this app.
  • Anytime, anywhere: Internet access required; standard message and data rates apply to download and use mobile app features and content. TurboTax mobile app devices supported include Android 4.1 and above, iOS 8 on iPhone 4s and above, and iPad 2.
  • Fastest refund possible: Fastest tax refund with efile and direct deposit; tax refund timeframes will vary.
  • Pay for TurboTax out of your federal refund: A $34.99 Refund Processing Service fee applies to this payment method. Prices are subject to change without notice.
  • About our TurboTax Product Experts: Customer service and product support (phone or chat) vary by time of year. Phone support not included with Free Edition.
  • About our credentialed tax experts: Live tax advice service is available for your toughest tax questions; fees may apply. Service, experience levels, hours of operation and availability vary, and are subject to restriction and change without notice. Click here for full terms and conditions. Not available for TurboTax Business customers.
  • Get up to 10% on top of your federal refund: Amazon.com Gift Card offer is for federal refunds only. Limits apply ($2000 per e-card, maximum $10,000 per customer). Offer available only for TurboTax Online (except Federal Free Edition) or CD/download versions sold and shipped, or downloaded directly from Intuit or Amazon. Except as required by law, Amazon.com Gift Cards cannot be canceled, transferred for value or redeemed for cash.

    Amazon.com is not a sponsor of this promotion. Except as required by law, Amazon.com Gift Cards ('GCs') cannot be transferred for value or redeemed for cash. GCs may be used only for purchases of eligible goods at Amazon.com or certain of its affiliated websites. For complete terms and conditions, see www.amazon.com/gc-legal. GCs are issued by ACI Gift Cards, Inc., a Washington corporation. All Amazon ®, ™ & © are IP of Amazon.com or its affiliates. No expiration date or service fees.
  • #1 best-selling tax software: Based on aggregated sales data for all tax year 2013 TurboTax products.
  • 4.8 out of 5 stars: Average based on customer ratings on TurboTax.com for TurboTax Online and CD/download products tax year 2014, as of January 2015.
  • Most Popular: TurboTax Deluxe is our most popular product among TurboTax Online users with more complex tax situations.
  • TurboTax CD/Download priority phone support: Priority phone support for TurboTax CD/Download Premier and Home & Business is accessible exclusively via the TurboTax.com Help Center.
  • Benefit Assist: After you file, TurboTax automatically shows you a full list of government benefits you may qualify for, like Food Stamps or reduced phone & utilities. Plus, we help you apply, saving you time and making it easier than ever to get more money! Estimate based on calculation of Benefit Assist users from tax year 2013 and published reports of average benefit and savings amounts from federal and state programs. Actual amounts and qualifications based on your individual situation; some individuals will not qualify. Feature may not be available for all customers.
  • Simplified State Experience: New, simplified state tax preparation available for most filers.
  • Eligibility for $25 cash back for returning Deluxe customers: Customers who have completed their 2013 taxes in TurboTax Deluxe (CD or download), and have completed their 2014 taxes in either TurboTax Premier or TurboTax Home & Business (CD or download), and apply here before 11:59PM PDT April 20, 2015, are eligible for $25 back. 2014 TurboTax Advantage users are ineligible for this offer. Terms and conditions are subject to change without notice.
  • $0 Upgrade Offer: Valid for customers who filed their 2013 taxes with TurboTax Deluxe (CD or download), completed prior year data transfer this year, and encounter an upgrade to either 2014 TurboTax Premier or 2014 TurboTax Home & Business (CD or download). Valid February 6, 2015 through April 20, 2015. TurboTax Advantage users are ineligible for this offer. This offer may not be combined with our $25 cash back offer. Terms and conditions are subject to change without notice.