What Is the Single Parent Tax Credit?

The term “single parent tax credit” is a common phrase used by individuals searching for tax relief. However, the Internal Revenue Service (IRS) does not have a specific credit with this name. Instead, the term refers to a combination of a specific filing status and several tax credits that single parents may be eligible to claim. These tax benefits are designed to provide financial relief and can substantially lower the amount of tax a parent owes.

Determining Your Filing Status

Your filing status is the basis upon which your tax obligations are calculated. For many single parents, the most advantageous option is the Head of Household status. This status offers a higher standard deduction and more favorable tax brackets compared to filing as Single, meaning more of your income is taxed at lower rates.

To qualify for Head of Household status, you must meet three specific tests set by the IRS. First, you must be unmarried on the last day of the tax year. Second, you must have paid more than half the cost of keeping up a home for the year. Third, a qualifying child or qualifying relative must have lived with you in the home for more than half the year, excluding temporary absences like schooling.

Meeting these requirements allows you to use the Head of Household filing status. For example, the standard deduction for Head of Household is thousands of dollars higher than for a Single filer. This larger deduction directly reduces your taxable income, which in turn lowers your tax bill before any credits are applied.

Key Tax Credits for Parents

Beyond the filing status, several tax credits directly reduce the amount of tax you owe dollar-for-dollar.

• The Child Tax Credit (CTC) offers a credit of up to $2,000 for each qualifying child under the age of 17. To be a qualifying child, the individual must meet specific age, relationship, residency, and support tests. The credit begins to phase out for single parents with a modified adjusted gross income over $200,000, and a portion may be refundable as the Additional Child Tax Credit (ACTC) for up to $1,700 per child.
• The Earned Income Tax Credit (EITC) is a refundable credit for low- to moderate-income working individuals and families. Eligibility depends on your income, with limits on both earned income and investment income; for 2025, investment income must be below $11,950. The amount of the credit varies based on your income and the number of qualifying children you have.
• The Child and Dependent Care Credit helps offset the cost of care for a dependent child under age 13, which allows a parent to work or look for work. The credit is calculated as a percentage of your work-related care expenses, and the total expenses you can use are capped. The percentage you can claim depends on your adjusted gross income.
• The Credit for Other Dependents (ODC) is a nonrefundable credit that provides up to $500 for each eligible dependent. This can include children who are 17 or older, college students, or other qualifying relatives you support who do not meet the CTC age requirements.

Information and Forms Needed to Claim Credits

To claim these tax benefits, you must gather specific documents before preparing your return. You will need the Social Security Number (SSN) for yourself and each dependent you plan to claim. You will also need records of your income, such as Form W-2 from an employer or Form 1099.

To claim the Child and Dependent Care Credit, you must have the total amount you paid for care, along with the name, address, and Taxpayer Identification Number (TIN) of the care provider. This could be an individual’s SSN or an employer’s Employer Identification Number (EIN).

Several specific IRS forms are used to claim these credits. The Child Tax Credit is calculated using Form 8812, “Credits for Qualifying Children and Other Dependents.” To claim the Earned Income Tax Credit with a qualifying child, you must complete and attach Schedule EIC, “Earned Income Credit.” For the Child and Dependent Care Credit, you will use Form 2441, “Child and Dependent Care Expenses.”

Claiming the Credits on Your Tax Return

After completing the supplementary forms, the final step is to transfer the calculated credit amounts to your main tax return, Form 1040. For instance, the total from Form 8812 for the Child Tax Credit is entered on Form 1040. The amount for the Child and Dependent Care Credit from Form 2441 is transferred to Schedule 3, which then flows to Form 1040.

The calculated EITC is entered directly onto Form 1040. Tax preparation software typically handles these transfers automatically, but you must perform this step manually if filing by mail.

If filing a paper return, assemble Form 1040 on top, followed by any numbered schedules and then the supporting forms. After filing, you can track the status of your refund using the IRS’s online tools.