Tax Credits That Put Money Back in Your Pocket as a Single Parent

What tax credits can actually reduce what you owe

Tax credits are different from deductions — they subtract directly from the taxes you owe, dollar for dollar. As a single parent, you may be able to use the Earned Income Tax Credit (EITC), the Child Tax Credit, and the Child and Dependent Care Credit, depending on your income and how many children you support. These are the three that put the most money back. The IRS calculates them when you file your tax return, so you do not apply separately — you claim them on the forms you already submit.

The amount you receive depends on your income, the number of children, and their ages. Income limits change each year, and they are higher for single filers than for married filers, which means you may may have access to even if your income seems high. The best way to know what you may have access to for is to file your return or use the IRS's free tax software, which walks you through the questions and calculates what you are may have access to to.

Key Takeaways

• The Earned Income Tax Credit can return between a few hundred and several thousand dollars depending on your income and number of children.
• The Child Tax Credit gives you up to $2,000 per child under 17, and part of it may be refundable even if you owe no taxes.
• The Child and Dependent Care Credit covers a portion of what you pay for childcare so you can work, up to a limit based on your income.
• You claim all three credits when you file your tax return using IRS forms or free tax software — there is no separate application process.
• Income limits and credit amounts change yearly, so checking the IRS website or using current-year tax software ensures you get the right amount.

The Earned Income Tax Credit (EITC) and how much it pays

The EITC is the largest tax credit for working single parents with lower to moderate income. The amount you receive depends on how much you earned and how many children you claim. For tax year 2023, the maximum credit ranged from about $600 for filers with no children to over $3,900 for those with three or more children, but these amounts change yearly.

You must have earned income — wages from a job, self-employment income, or similar — to claim the EITC. You cannot claim it on investment income or unemployment benefits alone. If your income is below the limit for your situation, you may receive a refund larger than the taxes you paid in, which means the IRS sends you money. This is called a refundable credit.

The IRS has a tool on its website called the EITC Assistant that asks you a few questions and tells you whether you likely may have access to. You can also use free tax software, which will calculate the exact amount based on your return.

The Child Tax Credit and the refundable portion

You can claim up to $2,000 per child under age 17. Part of this credit is refundable, meaning if the credit is larger than the taxes you owe, the IRS sends you the difference. The refundable portion is called the Additional Child Tax Credit, and for recent tax years it has been up to $1,700 per child, though this amount can change.

To claim the Child Tax Credit, you need the child's Social Security number and they must be your dependent. The child must be a U.S. citizen, national, or resident alien. If you have custody but the child's other parent claims them as a dependent, you cannot also claim the credit — only one parent per child per year.

The credit phases out as your income rises, so the higher your income, the smaller the credit becomes. Once your income exceeds a certain threshold (which varies by filing status), you lose the credit entirely. The IRS website lists the current-year thresholds, and tax software will calculate whether you may have access to.

The Child and Dependent Care Credit for childcare costs

If you pay someone to care for your child while you work, you may be able to claim a credit for part of that cost. The credit covers up to $3,000 in childcare expenses per year for one child, or up to $6,000 for two or more children. The credit itself is between 20% and 35% of those expenses, depending on your income — the lower your income, the higher the percentage.

The care must be for a child under age 13 (or a dependent of any age who cannot care for themselves), and it must be so you can work or look for work. may be able to access care includes daycare centers, in-home childcare, after-school programs, and summer camps. It does not include school tuition for kindergarten and above, or overnight camps.

You will need the name, address, and tax ID number of whoever you paid for care. If you used a daycare center, they can provide this. If you paid a babysitter or nanny, you need their Social Security number or Individual Taxpayer Identification Number. Keep receipts or statements showing what you paid.

How to claim these credits when you file

You claim all three credits on your federal tax return. If you file on paper, you use specific IRS forms: Schedule 1 for the EITC, Form 8812 for the Additional Child Tax Credit, and Form 2441 for the Child and Dependent Care Credit. If you use tax software, the software guides you through questions and fills in the forms for you.

The IRS offers free tax software through its Free File program if your income is below a certain threshold (usually around $79,000 for recent years). You can access the list of approved software on the IRS website. If your income is above that limit, you can still use free software through some nonprofits and community organizations, or you can pay for commercial tax software.

You file your return the same way you normally would — by mail or electronically. The IRS processes your return and calculates the credits. If you are owed a refund, you receive it by direct deposit, check, or prepaid card, depending on how you filed. Processing usually takes a few weeks to a few months depending on the method.

Income limits and how they affect what you receive

Each credit has an income limit, and if your income exceeds it, you receive a smaller credit or none at all. These limits are higher for single filers than for married filers, which is one reason single parents often come out ahead on taxes. The limits also change every year because they are adjusted for inflation.

For the EITC, the income limit for a single parent with one child was around $46,000 for tax year 2023, but this varies by number of children and changes yearly. For the Child Tax Credit, the phase-out begins around $400,000 for single filers. For the Child and Dependent Care Credit, there is no hard income limit, but the percentage of expenses you can claim decreases as income rises.

The best way to know your exact limits and credit amounts is to check the IRS website for the current tax year, or use tax software that pulls current-year numbers. Do not rely on last year's amounts — they change.

What happens if you claim a credit you do not may have access to for

If you claim a credit incorrectly, the IRS will catch it when processing your return. They may reduce your refund, ask you to repay the credit, or both. For the EITC and Child Tax Credit, if the IRS determines you claimed them in error, you may have to repay some or all of the money. The process can take months.

To avoid this, be honest about your income and your children's information. If you are unsure whether you may have access to, use the IRS's online tools or speak with a tax professional. Many nonprofits offer free tax help to people with lower incomes — you can find local services through the IRS Volunteer Income Tax Assistance (VITA) program.

Frequently Asked Questions

Do I have to file a tax return to get these credits?

Yes. Even if you owe no taxes, you must file a return to claim refundable credits like the EITC and the Additional Child Tax Credit. If you do not file, you do not receive the money. You have up to three years to file a return and claim these credits, but filing sooner is better.

Can I claim a credit for a child if the other parent claims them too?

No. Only one parent can claim a child as a dependent per tax year. If you and the other parent share custody, you need to decide who claims the child, or you can alternate years. If you disagree, the IRS has rules about who gets to claim based on custody and support.

What if my childcare provider will not give me their tax ID number?

You cannot claim the Child and Dependent Care Credit without it. Ask the provider directly — they are required to provide it if they are a legitimate business. If they refuse or you cannot reach them, you cannot claim that credit for that year. Keep trying to get the information in case you can amend your return later.

Will getting a tax credit affect my other benefits?

The EITC and Child Tax Credit may affect means-tested benefits like SNAP, Medicaid, or housing assistance, depending on the program and how it counts income. Some programs count tax refunds as income in the month you receive them. Check with the specific program before filing, or ask a tax professional who knows your situation.

Can I claim a credit if I am not a U.S. citizen?

You can claim the EITC and Child Tax Credit if you have a valid Individual Taxpayer Identification Number (ITIN) and meet the other requirements. Your children must be U.S. citizens, nationals, or resident aliens to be claimed as dependents. If you are unsure about your status, speak with a tax professional or contact a nonprofit that helps immigrants with taxes.