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Identifying tax situations that apply to unmarried parents

On Behalf of | Jan 28, 2015 | Uncategorized

Unmarried parents from Arizona may be interested in learning about what factors affect their taxes. Before an individual files their taxes, they might want to research a few different tax situations. For example, whenever a person files their taxes, they will be asked if they are the head of household. This refers to a parent who was unmarried for the entire year and makes at least 50 percent of the income for the family. Typically, if a person’s status is head of household, they will be able to receive a lower tax rate and might be able to file for more deductions.

However, the head of household only applies to a parent whose children resided with them for at least six months during the year. The IRS also defines claiming a dependent by this rule as well. A head of household who is also a full-time student may be able to claim a child care credit as well. This can apply to qualifying after-school activities and summer day camps.

A parent with three or more children may be able to receive an earned income tax credit if their income was less than $46,997. It is possible to receive this credit if a parent has one or two kids and makes a lower income.

Determining whether a child can be claimed as a dependent or not could change the way taxes are filed. Claiming a dependent could allow an individual to receive different tax credits or deductions. In divorce proceedings, the matter is usually discussed and the person who will be claiming the child is designated. In some situations, the parents might alternate years in claiming the child, or if they have more than one child, they might each claim one. A divorce attorney might be able to assist in creating a waiver that allows a parent to claim a child as a dependent.