- Earned Income Credit (EIC) is a program designed to offer income-based tax relief to low and lower-middle income working people (with or without children). In 2008, a single mom who earned less than $33,995 who had one qualifying child could earn up to a $2,917 credit, while a single mom with two kids making less than $38,646 qualified for up to $4,824.
- If a single mom makes less than $75,000 a year, her child is under the age of 17 and a U.S. citizen (or national resident) and she supported and housed the child for more than half of the year, she can claim a child tax credit of up to $1,000 per child. This credit is available to full and part-time workers.
- Working single moms with kids under the age of 13 who pay someone else to care for their children while they work or look for work may be eligible for child care credit. The credit may be for up to 35 percent of child care expenses. In 2008, moms with one child were eligible for up to $3,000 credit, while those with two or more were eligible for a $6,000 credit.
- As long as a single mom was not married on the last day of the tax year, her child lived with her for more than half the year and she provided more than half the financial support to her household, she can file "Head of Household." This allows a single mom to claim a higher standard deduction and can reduce her overall tax burden.
- A single mom filing "Head of Household" can claim an additional exemption for herself and each of her qualifying children. The exemption was $3,500 for each qualifying family member in 2008, meaning that $3,500 of mom's income would be left untaxed for each child.
