8 THINGS SINGLE MOMS AND DADS NEED TO KNOW ABOUT TAXES

Unmarried parents face a unique set of concerns in life, and that includes taxes Before filing, consider these federal tax considerations:

• Head of household status. If you were unmarried on Dec. 31, 2014, earn at least 50 percent of your household income and your kids live with you for 6 months of the year or more total, file as head of household. This usually affords you a lower tax rate and higher deductions.
• Determine who you can claim as a dependent. This determines whither you can take any number of other credits and deductions. This is usually stipulated in a separation or divorce agreement, and the parent who would normally claim the child can agree to sign a waiver allowing a non-custodial parent to make the claim. You cannot split this deduction for a single child, but some parents agree to take turns claiming children on alternate years, or if there are two or more children, agreeing that each parent can claim one of the kids. However, the IRS determines that a child is a dependent based on if the child lived with a parent for at least six months and was financially supported for the same time.

To continue viewing this article by Emma Johnson please click below:
http://www.forbes.com/sites/emmajohnson/2015/01/26/8-things-single-moms-and-single-dads-need-to-know-about-taxes/

For more information, contact the Family Law Offices of Renee M. Marcelle at (415) 456-4444, or online at http://www.familylawmarin.com/ --