Becoming a single a mother is very difficult since you have to work as well as take care of house and children every day. Your spending may not get along with your income and problem come when you have to pay taxes. Actually, there are some valuable information to save your money on taxes.
- If you are an employer, you will get W-4 form. You should fill the form with amount of taxes that you withhold for federal taxes. More numbers that you write, less taxes you should pay. You will receive two exemptions if you have a child. However, the disadvantage that you can get is reduction of taxes return at the end of year.
- You also get W-5 form that has different function from W-4. They are alike in term of tax refund decreasing but W-5 allows you to get income credit. If you have income less than $32,000 per year, you can claim your credit. Your children will also get the credit for about $3,000 per person. The amount of money will be received along with tax refund.
- When you go to work, you often ask someone to care your children or you take them to day care. The cost to support children is deductible. The day care center will arrange a statement when you have to pay taxes at the end of year.