Taxes

16 Replies
K - January 9

I gave birth to my daughter in October 2005, and am a single mother. Can I claim her as a dependent on this year's return, or do I have to wait until next year? My friend said I might qualify for the earned income tax credit and I'm wondering if anyone has info on this. Thanks.

 

Christy - January 9

I think you can claim her, but I don't know anything about the earned income tax credit thing. Sorry.

 

Steph - January 9

Yeah, you can claim her for 2005 taxes just so long as you have her Social Secuirty number.

 

KrisD - January 9

You bet - claim her for sure!!

 

Amayas Mommy AKA Stephanie - January 9

Yeah you calim her! We just filed taxes last week and I am soooo excited about getting our returns!

 

KrisD - January 9

Did you see a big difference Stephanie?? I am wondering if we will...

 

tiffani - January 9

You can absolutely claim her! If you're a single mom and the parent she lives with, you get to claim her. Make sure her father doesn't attempt to do the same or you may have some problems. Typically the first parent to claim the child gets the credit, and once the SSN # is accepted by the IRS, that's it. The IRS doesn't know which parent is ent_tled to claim the child, so it will issue the refund to anyone claiming the child. Since you're a single working mom you can expect to receive "earned income credit." If you were looking for a ball park estimate on what you can possibly expect to receive, I would say somewhere in the neighborhood of $2500. Now keep in mind i'm just throwing out a number based on my experience doing taxes (I worked for H&R Block prior to having children) That seemed to be the average amount of return singles moms would get, but of course it all depends on your income. :o)

 

Steph - January 9

I received $3,300 once, when I was single and had an income of $16,000. It was quite lovely!! Last year I received a whopping $517 and this year I'm pretty sure it'll go down. :o(

 

Shannon - January 9

yup, u can claim her. for any who are interested- you can also file together if you got married any time before Jan. 1, even Dec. 31

 

TC - January 9

Even if she was born on Dec. 31, you can claim her for the year!!! Woohoo!

 

TC - January 9

Tiffani, how does that work with a married couple. We file together and I only worked for like 4mos last yr. Do you think we could get a good amount back?

 

hp - January 9

Tiffani, what's "earned income credit" and how does it work? Thanks.

 

Heidi - January 9

Yeah what is earned income credit? My fiance and I aren't married so I will be filing single with one dependant and he gets to claim his two kids from a previous marriage so we both get the child tax credit also but I don't know what that earned income credit means. I a__sumed it was for the lower income bracket. I made about $35,000 this year and I get to claim my daughter and the interest on our mortgage and property taxes. Is earned income credit the same as head of household? My fiance can't claim that cus his kids don't live with us and since he makes a little more than me I said I'd claim Emma on my taxes and he can claim his girls on his. It's sad to say but we were told it was cheaper for us not to be married cus of taxes. Sad huh!?!?! I also get our health insurance pre-taxed and was told that will make a difference in my income, bringing it down so to say and next year I'll get to claim my daycare expenses, which will be around $5,000. Isn't that nuts!?!?!?!?

 

Jbear - January 10

You have to make less than a certain amount to be eligible for the earned income credit--it changes each year. Basically, you get back much more than you actually paid. I had a coworker who was single with two kids, made ten thousand for the year and got back four thousand.

 

tiffani - January 10

TC~ Unless your husband is self employed (and maybe even so if he is, it depends), you'll definitely want to file "married filing jointly" otherwise you'll get penalized if you file seperately. You can get EIC if you're married (and you must file jointly to claim the credit). The maximum income (for you and hubby combined) can't exceed $33,030 (this is the amount for husband, wife and 1 child, you're allowed a bit more income for more that one child). That will give you a credit of $2,662. So, to answer your question, I can't really say how much you'll get back because it depends on what you made. If you made less than 33k you'll get the above mentioned credit + all the taxes you had withheld on your paychecks. (although I can't remember if that includes your social security and medicare tax or not) :o) Heidi~ You are right on the cusp of qualifying for EIC. Remember too that since you're itemizing, your out of pocket $$ regarding health care expenses is also tax deductible. So is the mileage it takes to get to doctors appointments. This also includes the health insurance you paid for out of your paycheck. Of course there's a magic number you have to hit for it to have an impact, but you just may be near that number since you had a baby, especially if you had to pay a percentage of your hospital bill as I did. :o) hp~ Earned income credit is a tax credit for workers who didn't earn a lot. It was designed as a way to encourage people to stay off welfare and reap the benefits of employment, by giving them a boost in income to push them above the federal poverty line. It can make all the difference to a single parent. :o)

 

Jbear - January 11

The more you make, the less the earned income credit is. Last year and the year before, we took the earned income credit and our refund was only around $700. The year before that, our income was much lower because I didn't work for 6 months after Valerie was born. Our refund that time was $1700. There's a chart in the book that goes with the tax form, that shows how the EIC decreases as your income increases.

 

tiffani - January 11

Exactly right Jbear. We're stuck in the "middle cla__s trap". Hubby makes too much to get the credit, but we're no where near rich enough for the huge tax cuts the rich receive. Also forgot to mention.. if you have investment income of over $2500, you're also not allowed to claim the EIC. :o)

 

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