Most people have received their w-2 and or 1099’s by now and are ready to file. Are you one of the? I haven’t done mine yet because I’m way too busy with other things but, as an mom that has over 12 years in tax prep industry, I will be sharing a series of tax tips for the next three weeks. It is tips and strategies that I have picked up over the years. So make sure you come back on Wednesdays, Fridays and Mondays.
Today, it’s all about the SINGLE MOMS:
If you are a single mom, you need tax help specific to your situation. You do know that the government takes a chunk of your money every time you are paid, right? Here are three tips to keep an eye out for your money, while putting a couple of dollars in your pocket.
If you have not done so yet, please get a empty shoe box to save your receipts and records. Don’t make the mistake of thinking that you don’t earn enough to take advantage of the credits and deductions …….you would be surprised.
1. Child Care
Childcare is a great place for a mom to find a tax benefit. The single mom who works outside of the home usually finds that a big chuck of her paycheck is taken up by paying for child care. Even when the kids are old enough to be in school full time, work schedules seldom align with the school day, meaning child care is needed either before or after school. In addition, there are days when school is dismissed early, canceled and school breaks. Not to mention the dreaded days when the school calls because the child is ill.
You may be eligible for a tax credit on your income tax if you regularly pay for child care while you’re on the job. The credit could be as much as $6,000 for the mom who pays for the care of two or more children. Nice right?
2. Donations People tend to donate more to charitable causes during the year than they think. Between the giving at work in the form of cash and donations toward food collections for the needy, the one and five dollar bills can add up quickly. Add that to donations to charitable shops, and you might find that you have given enough during the year to claim the donations for a deduction on your income taxes.
Kids go through clothes and toys quickly. Whether they destroy them or outgrow them, the items that are useless to your family still have value. Donate the gently used items to charity to be redistributed to others who need them. For the clothes that have been well used, look for a charitable organization in your vicinity that collects fabric items to resell as rags.
Make sure to get a receipt for the donated items. If you are given a blank receipt, be fair when determining a value. I suggest listing the items before giving them away.
3. Relocation for Employment
If you moved to get a new job, or because your existing job required you to relocate, you could be able to get some of your moving expenses back, so make sure you keep all of the receipts for moving expenses.
There are two criteria to determine if you’re eligible:
- The distance you would have had to travel is 50 miles or more from your former home to the new work location.
- During the 12 months following your move you have worked for a minimum of 39 weeks in the area of your new home, you may be able to recoup a portion of the moving expenses. You don’t have to stay at the same job for the 39 weeks. The requirement is that you work in the same area.
I hope these three tips help.Here is a bonus. Be careful who you give your tax info to. Think of questions to ask your provider before you get there. If you need more guidance,surf over to KP Tax Service.(KPTaxService.webs.com) You won’t find a friendlier, more knowledgable person to help you with filing your taxes. Good luck!