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.
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.
1. File as Head of Household
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.
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.
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.
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.
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,