A Single Parent’s Guide to Tax Returns in 2022

As a single mom or dad, there are specific considerations you must take when filing your taxes — things your married parents don’t have to deal with, and stuff that your friends without children have no idea about.

If you are like millions of Americans, you may also be an investor since there are about 21 million investors out there. With the rise of investing and the many different ways that you can easily invest there are also tax implications to take into consideration.

TurboTax Premier easily guides you through your investment transactions and is an affordable, easy-to-use tool that automatically imports and uploads your investment transactions, including stocks, roboadvisors, and cryptocurrency transactions all at once.

How much does a single mom get back in taxes?

Parents expect the highest tax returns: A third of respondents with children under 18 expect a $2,000+ return, versus 9% of those with adult children and 5% of those with no kids. Plus, 22% of married couples think they’ll get a $2,000-plus return, compared to 11% of single people.

Determine who you can claim as a dependent as a single mom

The more kids you can claim as a dependent, the higher the deductions and credits for your dependents.

Exemptions for parents

The personal exemption of $4,050 was eliminated in 2018 as part of the Tax Cuts and Jobs Act.

Head of household status if you’re a single mom

If you were unmarried on Dec. 31, 2021, earn at least 50 percent of your household income, and your kids live with you for 6 months of the year or more total, single moms can file as head of household, and claim HOH on your W4

Tax credits for children

The American Rescue Plan raised the maximum child tax credit in 2021 to $3,600 for qualifying children under age 6 and $3,000 per child for ages 6 to 17. Most families will have received about half of their tax credit through monthly advance payments.

Child care deductions for single moms

If this tax-sheltering benefit is available through your employer or business, single heads of household can contribute up to $5,000 tax-free to pay for child care expenses for dependent children.

Alimony law change for 2019 and beyond

Until Jan. 1, 2019, alimony was deductible for the payor (97% of alimony payers are men, according to Census data), and taxable for the recipient (women).

Earned income tax credit for single parents

The maximum income limit for the 2021 earned income credit is: $42,158 for a head of household with one child. $47,915 for a head of household with two children. $51,464 for a head of household filer with three or more children.

What to do if you can’t pay your taxes EA Manasa Nadig of MN Tax and Business Services says if you cannot pay your taxes by the due date, you can enter into an installment agreement with the IRS.

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