Friday Four: Tax tips for moms

KP

U.S. Personal Income Tax and mothers …………yup that’s the buzz right now. Everyone is either happy to see this time of year or running around like a chicken with their head cut off trying to from shelters strategies to save them money. My mom group is fortunate enough to have an in house tax professional to help us out!

Queen City Stay At Homes Moms have all types of services as a perk to membership! One of them is tax preparation service. I gathered their top tips below.

It’s known that the IRS is kinder to single parents than it is to most other groups of people. To those in the know, tax time offers single mothers the chance to take advantage of several big tax breaks. A mom who spends a few extra hours preparing her tax return can even get a refund big enough to pay off the credit cards and still have enough left over for a new pair of good mom jeans, real shoes and a bra.

It's never too early to teach your child financial literacy!

It’s never too early to teach your child financial literacy!

For those moms that have a side hustle (you operate your business out of a home-office or telecommute, a portion of everything from your utilities) your real estate taxes, to your rent or mortgage may be deductible. “The deduction is based on the percentage of your home you use for business,” explains Greene-Lewis. “So if your house is 2000 square feet, and your office is 200 square feet, you can take a deduction worth 10 percent.” A phone or fax line will provide adequate proof that you’re using part of your home for work. “A lot of people skip the deduction because they think it’s difficult or complicated, and they’re afraid of being audited, but according to the IRS, less than one percent of taxpayers are audited.” Here are 4 more tips to get you started.

DIGITAL CAMERA

Volunteer with a certified non profit? It maybe deductible!

1. File as Head of Household

Up to 35% of child care expenses can be claimed by a single mom who works. This could translate in up to $6000 in credits if she has two children.

Up to 35% of child care expenses can be claimed by a single mom who works. This could translate in up to $6000 in credits if she has two children.

Before you check the box, though, make sure you meet the following qualifications:

  • You must be unmarried or have lived apart from your spouse for at least the last half of the year.
  • You must have a qualifying child–an unmarried child or grandchild who is yours by birth or adoption, who lives with you for more than half of the year.
  • You must have paid over 50% of the cost of keeping up the home that the qualifying child lived in for at least half the year.

2.  Take the Additional Child Tax Credit 

In order to claim the Child Tax Credit, the child in question must

  • be your son, daughter, stepchild, foster child, adopted child, brother, sister, or a descendant of any of these
  • have lived with you for more than half the year
  • be under age 17 at the end of the year
  • not have provided more than half of his/her own support
  • be a citizen or resident alien of the United States
  • be younger than you
  • not file a joint return with his/her spouse (though there are exceptions)
  • meet the requirements to be claimed as your dependant
  • be claimed by his/her parents – if claimed by someone else, that person must have a higher AGI than either parent.

Question: "A friend just told me that my breast pump is tax deductible. Is this true? Are there other tax deductions for newborns?" Short Answer YES!!! Breast feed ON!

Question: “A friend just told me that my breast pump is tax deductible. Is this true? Are there other tax deductions for newborns?” Short Answer YES!!! Breast feed ON!

3. Child and Dependent Care Credit tax credits are available if you pay someone to take care of your child while you are working. This is only for children that are under the age of 13 for part of the year.  This tax credit can reimburse you for part of your child care expenses to allow you to have a lower tax responsibility and possibly get a bigger refund back.

You get exemptions for yourself, as well as each child that you have, which can decrease your tax responsibilities. If you share custody, you will need to discuss with your ex who will claim the kids on their income tax, as both parents cannot claim all of their children on two separate returns.

You get exemptions for yourself, as well as each child that you have, which can decrease your tax responsibilities. If you share custody, you will need to discuss with your ex who will claim the kids on their income tax, as both parents cannot claim all of their children on two separate returns.

4.Take the Earned Income Credit-Originally developed to encourage people to return to the workforce, this credit gives an extra break to low-to-moderate income workers. Anyone whose annual earned income falls below $45,000 may be eligible, and a mother with three or more dependent children can receive up to $5,891. Unlike many breaks, you don’t need to have taxes taken out of your paycheck to receive it, meaning you could get back thousands more than what you paid in taxes.

Homeschools in most states cannot be run as a business nor even as a non-profit as you do not charge your own children for their education, and you provide no community service to others than your own family.

Homeschools in most states cannot be run as a business nor even as a non-profit as you do not charge your own children for their education, and you provide no community service to others than your own family.

Sitting down with a year’s worth of paperwork is no fun, but your refund’s arrival is enough to make you jump for joy.

Tax Breaks Every Parent should know about.

 

Child Tax Credits for Illegal Immigrants

Home Education and Taxes

Keeping track of all these IRS rules and regulations can get confusing. Thankfully the  moms of Queen City Stay At Home Moms have help. KP Tax Service will make sure it is done right and that every mom gets every cent that she deserve.

Whose doing your taxes,

~QC Supermom

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s