It’s that time of year again. Time to settle things with Uncle Sam. For some of us, this is our little savings account, we look forward to that refund every year and have plans for it long before we get it. If you are not good at saving, this may be a way to pay for bigger items for yourself and your children, maybe a vacation or new clothes, depending on what is needed.
Since the government doesn’t pay interest on the money we lend them for the year you would be better off getting more money in your paycheck and saving it yourself. Some of us are not good savers, if you know that about yourself getting a bigger refund may be the way to go.
One thing many single parents have to worry about is whose year is it to claim the kids. I know most divorced couples alternate years if they have one child or split claiming the children if there are more than one.
I was fortunate, I got to claim Hailey every year but I know others who worry every other year about whether or not they had enough withheld since they don’t get to claim the kids.
It’s important that you plan ahead, if you claim the kids this year make sure you go to your human resource department and have your withholdings adjusted for the coming year so there are no surprises at tax time.
Also don’t forget that as a single parent you may be entitled to some tax breaks and deductions you weren’t entitled to when you were married.
This will be the first year I don’t get to claim Hailey. She is eighteen and works full time so she will file her own taxes, I also don’t get to file as head of household, I’m not sure what that is going to do to my tax liability but I’m certainly not looking forward to it.