Quick Tax Tips for Single Parents


Being a single parent can bring its own unique challenges and concerns in life, but filing taxes shouldn’t be one of them!

Here are some basic things to consider before filing your taxes this year.

Dependents:

Determining who you claim as dependents affects your ability to receive some credits and deductions. In a separation or divorce, this is usually a stipulated agreement between the two parents. However, the both parents can benefit if the parent who normally claims the child agrees to sign a waiver allowing for the non-custodial parent to make the claim. While you cannot split the deduction for a single year, parents can alternate years making the claim or only claim certain children if there are more than one. Remember that a child can only be a dependent if the child has lived with a parent for at least six months out of the year and was financially supported from that parent.

Head of Households:

You can file as head of household if you were not married on December 31, 2014, your kids live with you for at least 50% of the year, and you earn at least 50% of your household income. Head of household status will allow you a lower tax rate and higher deductions.

Exemptions:

For every dependent child you are allowed to deduct $3,950 for 2014. Head of households earning $275,650 or more are phased out.

Tax Credits:

Single parents earning $75,000 adjusted gross income or less can take $1,000 off their tax bill for each dependent 16 and younger in 2014.

Child Care:

Head of households who have an income or are full-time students can claim up to $3,000 per child for qualifying health care. This includes day care, summer day camps, and after school programs. Phaseout starts at $75,000 for single head of household filers.

Earned Tax Income Credit:

The maximum credit is $6,143. If you have three or more children and earn less that $46,997 as a single parent you can take this credit. If you have two children you can still qualify if you have a smaller income.

We hope this will help you begin to file your taxes! For all your tax preparation and tax debt needs call 888-737-0200. The tax experts at Advocate Tax Solutions are here to be your one stop shop for every tax question and problem. Visit www.advocatetaxsolutions.info for more information today!

6 Tips for Budgeting Last Minute Holiday Trips


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If you’re going home or decided to take a last minute vacation for the holidays, you may be thinking it is too late or that it’s going to kill your budget. After all, doesn’t everyone always say that you have to book a trip far in advance or it will cost you? While it may be easier to find deals when you have more time, there are plenty of ways to save money on last minute planning.

  1. Use Expedia or Travelocity to find flights

If you don’t already have frequent flier miles, find a cheaper airline like Spirit Airlines. These sites will also widen your search, and will include alternate airports in the search results. Most major cities have several airports or airports than can be reached within an hour or two hour drive.

  1. Sign Up for Fare Alerts

Save time by letting travel sites notify you when fares drop. You can sign up for fare alerts on:

  • Airfarewatchdog
  • Yapta
  • FareCompare
  • TripAdvisor
  • Kayak
  1. Search one seat at a time.

If you are searching for more than one seat, airlines will only show the fares that are available for all travelers, even if some of the seats are available at lower prices. You can save money by splitting up your reservation.

  1. Travel on Christmas Day

It’s probably not ideal but it most likely cheaper. If you didn’t book early enough, try looking on Christmas Day. There are fewer people traveling which will result in lower fares.

  1. Be Willing to Be Bumped

If you have enough flexibility, be willing to be bumped. It won’t save you money right away but you could get a voucher for your next trip.

  1. Look into buses and trains.

There are great alternatives for travel when flying is unaffordable. Taking the bus no longer means taking the Greyhound. Bus services like Megabus offer amazingly low prices and have Wifi and other amenities. Amtrak is also a viable option when flying is not.

With some creative planning, you can get to wherever you want to be during the holidays without paying too much. Have safe travels and a great holiday!

If you have any financial questions call your trusted advisers at 888-737-0200

or visit www.advocatetaxsolutions.com