Tens of Millions of Single Moms, Caregivers & Other Hardworking Americans Are Missing Out at Tax Time
Learn About the Most Common Overlooked Tax Benefits and Life Changes that will Transform your Taxes and Save you Money
Americans everywhere are missing out on credits,”
According to the last US Census, there were close to 10 million single mothers living in the US. And when it comes to taking advantage of tax credits, many are missing out. For instance, according to the IRS, 1 in 5 eligible taxpayers fail to claim the Earned Income Tax Credit (EITCa 2007 report by the AARP Public Policy Institute found that about 34 million family caregivers provided care at any given point in time, and about 52 million provided care at some time during the year. This translates to millions of people missing out at tax time resulting in a staggering amount of money being left behind on the table.
As we get ready for the start of the new tax season, Dave Prokupek, CEO of Jackson Hewitt, one of the nation’s largest and well known tax preparations services, provides tips to all single and working moms, small business owners, and to those providing care to parents and elders and other hardworking Americans on how to best prepare for filing to get the most back at tax time.
Some things you need to look into:
• Overlooked Tax Benefits for Single Moms
• Filing as Head of Household instead of Single brings higher deduction & lower overall tax rates
• If father claims dependent exemption, you can still claim childcare, EITC & Head of Household Child support isn’t taxable and doesn’t affect your EITC
• Claiming credit for childcare while you work reduces your overall tax burden
• Claiming a tax credit for each child under age 17 can increase your tax refund
• Overlooked Tax Benefits for Caregivers
• If taxable income is less than $3,950.00 you can claim parent as an exemption
• If you can’t claim care beneficiary due to their income, you can still claim medical expenses you pay
• You can claim senior day care, home healthcare needed so you can work. There are also some additional medical deductions you may be eligible for.
• If you are unmarried and are your parent’s caregiver, you may be able to claim Head of Household status.
• 5 Life changes that will change your taxes and may save you more Money
• Getting married – this is especially true if one spouse doesn’t work or makes substantially less income than the other
• Having a child – the child tax credits, child care credit if all parents work and pay for child care, earned income tax credit if income is below $44,000 ($52,000 if three or more children), and a $3,950 exemption deduction for the new dependent
• Turning 65 – a greater standard deduction for the taxpayer, and their spouse, when the reach 65
• Going back to school to start, finish, or expand your education – there are credits and deductions available for the cost of getting the education AND you can deduct your student loan interest while you pay off your loans. So take a credit for the tuition and fees paid by money you borrowed now AND deduct the interest while you pay the money back.
• Sharing the cost of taking care of an elderly parent, or other relative, with your siblings. If you and your siblings are taking care of an elderly relative, you may be able to take turns each year claiming the relative as a dependent and reduces your taxable income. In addition, you can claim the medical expenses you paid the year you claim the relative to further reduce your taxes.
Interview Sponsored by Jackson Hewitt