Tax season can feel like a maze — especially for single moms, divorced moms, and those navigating the complexities of a blended family. Between managing child care, co-parenting agreements, and juggling expenses, finding ways to maximize your refund or minimize your tax burden can feel overwhelming.
But don’t worry — you’re not alone. CafeMom spoke with Dawn Delia, a federal tax lawyer and CEO of Delia Law, to help you keep more of your hard-earned money while avoiding common tax pitfalls. Whether you’re filing as Head of Household, claiming dependents, or dealing with shared custody, these strategies will set you up for success this tax season.
Common Tax Problems
Dawn explains that when it comes to taxes, single moms, divorced moms, and those in blended families often face a unique set of challenges. The complexity of tax laws, combined with shifting family dynamics, can lead to errors, disputes, and missed opportunities for valuable deductions and credits.
Single Moms and Divorced Parents
Dawn shares that one of the biggest sources of conflict for divorced parents is determining who gets to claim the child as a dependent. The IRS typically allows the custodial parent (the one with whom the child lives for more than half the year) to claim the dependent exemption and associated credits. However, this can be complicated if the noncustodial parent has a legal agreement or IRS Form 8332, transferring the right to claim the child. Many parents either claim the child incorrectly or fail to communicate, leading to IRS rejections and audits.
Another frequent tax issue Dawn and her team see is the Earned Income Tax Credit, which provides significant financial relief for lower-income families, but eligibility is based on income, filing status, and custody arrangements.
“A common problem arises when a noncustodial parent improperly claims the EITC, leading to disqualification or audits. Single moms who qualify but don’t file correctly may miss out on thousands in refundable credits,” Dawn tells CafeMom.
Dawn says that filing status can also cause problems and confusion. Filing as the Head of Household — HOH — can provide lower tax rates and a higher standard deduction, but many single or divorced moms mistakenly file as “Single” when they actually qualify for HOH. Likewise, some incorrectly claim HOH when they don’t meet the IRS’s strict residency and support tests. This can trigger audits or lost tax benefits.
Blended Families
Dawn explains that blended family situations come with their complications when it comes to taxes. For example, a stepparent may assume they can claim stepchildren, but unless legally adopted or meeting IRS support rules, they may not be eligible.
She adds that if multiple adults (biological parents, stepparents, grandparents) support a child, determining who has the right to claim the child and associated credits can be tricky.
“Coordination between ex-spouses and new partners is essential to avoid duplicate claims, which can lead to IRS disputes,” advises Dawn.
Pro Tax Tips for Single Moms
Dawn explains that navigating how to file your return as a single mom, divorced mom, or part of a blended family can be challenging due to shifting custody arrangements, complex tax credits, and the potential for disputes over who gets to claim dependents.
Here are Dawn’s tax tips for single moms:
1. Ensure you claim your children as dependents, which can lead to valuable tax breaks like the Child Tax Credit and the Earned Income Tax Credit (EITC).
2. If you are unmarried and have a child living with you for over half the year, you can file as Head of Household, which offers a higher standard deduction.
3. Check to see if you qualify for the Child and Dependent Care Credit if you are paying for child care to work or seeking employment.
4. Inform yourself about the Child Tax Credit which can provide up to $2,000 per eligible child, significantly reducing your tax burden.
Pro Tax Tips for Divorced Moms
Here are Dawn’s tax tips for divorced moms:
5. Be informed and fully understand the rules around custody arrangements when claiming children as dependents. Typically, the parent who the child spends the most time with can claim them, but joint custody agreements may allow for exceptions.
6. Child support, while not taxable, should be factored into financial planning, especially if unpaid. Those with a lower income may also qualify for the EITC.
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Pro Tax Tips for Blended Families
Here are Dawn’s tax tips for blended families:
7. Blended families should establish clear rules about who claims which family members, as only one parent can claim a child as a dependent each year.
8. Those adopting children may qualify for the Adoption Tax Credit, which can help with adoption-related expenses.
9. In divorce scenarios, parents may agree on alternating years for claiming children as dependents.
10. Blended families can also benefit from various tax breaks, such as the Child Tax Credit and EITC, but must navigate the complexities of multiple family dynamics when doing so.
Taxes can be tricky, especially when you’re navigating life as a single mom, managing a divorce, or blending finances in a new family dynamic. While these tips can help you make informed decisions, every tax situation is unique.
Consulting with a qualified tax professional can ensure you’re maximizing your deductions, staying compliant with the latest tax laws, and avoiding costly mistakes. Don’t leave money on the table — reach out to an expert to get the personalized guidance you deserve.
The information in this article is for educational purposes only and should not be considered tax, legal, or financial advice. Always consult a certified tax professional or financial advisor for guidance specific to your situation.
