Parents in Nevada who are going through a divorce will need to negotiate a number of issues involving child custody, visitation and support. There are also federal income tax credits and exemptions available for single parents that they may be able to take advantage under some circumstances. Because each child can only be claimed as a dependent by one parent, parents may want to include this in their divorce agreement. If the parents have more than one child, they might agree that each of them can claim one or more children.
The head of household filing status is available to a single parent who earns at least half the household income and has the children for at least six months out of the year, and it often results in lower income taxes than single filing status does. Qualifying as head of household also means an individual may be eligible to claim some income tax deductions for qualifying child care expenses as well as the costs of after-school programs and summer day camps. This may also be available for single parents who are full-time students.
In addition to claiming an exemption for dependent children, single parents may also be eligible for other income tax benefits. Single heads of household can set up a dependent care spending account that allows them to save money tax-free.
These federal income tax benefits may have implications for the decisions that divorcing parents make around child custody and visitation, and can often be addressed in an overall divorce settlement agreement that is submitted to the court for approval. Family law attorneys may be helpful in these divorce legal issue negotiations.
Source: Forbes Magazine, "8 Things Single Moms And Dads Need To Know About Taxes", Emma Johnson, Jan. 26, 2015