Head of Household standard deduction and tax rate schedule are the second lowest after Married Filing Jointly and Qualifying Widow. Higher standard deduction amount means less income is subject to taxes, and a lower tax rate means less taxes. Lower taxes equals a higher refund.
Daycare is expensive and as a single parent one of your highest priorities. There is a tax break for all or part of your taxes though. First, use your company’s daycare flex spending account. This account allows you to use up to $5,000 a year of your income before taxes to pay for your daycare. Then you can use any remaining expense, up to $6,000 total spent, for a tax credit when you have more than two children in daycare. This is a total win-win when it comes to reducing your taxes and taking care of your most precious commodity.
Let’s not forget the Child Tax Credits.
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