The child tax credit is not a refundable credit. If you do
not have any tax, you cannot take the credit. However, the additional child tax
credit is refundable, and can help many single moms get a refund when they
otherwise wouldn't. The paperwork is fairly complicated, but if you qualify,
claiming this credit can make the difference between not getting a refund and
getting one. You qualify for the additional tax credit if you have three or
more qualifying children and cannot take the entire child tax credit, or if you
have fewer than three children, cannot take the entire child tax credit, and
earned more than $10,750.
Figuring the additional child tax credit can be tricky, so
take it slowly and read the instructions carefully. You'll need form 8812 and
its instructions, as well as your 1040 or 1040A form and instructions.
Conclusion
Completing your taxes can feel like one more thing you don't
have time for. If you are a single mom, though, you can look toward tax day
without the dread that a lot of people feel. There is a lot to remember, and
the rules change every year, but knowing that you have less tax than other
people should make the process a little easier.
Always consider having your taxes done professionally. It's
not as expensive as you may think, and most people more than make up the cost
of the service in credits and deductions that they may not otherwise have
taken. Using a computer program to figure your taxes is another way to take a
lot of the guesswork out of filing.