It is true that there is some special privilege for single moms on tax debt relief. And it’s not so secret actually; this has existed for a while now. This is maybe because nobody cares except single moms who ask IRS about this. However, what makes it so special?
It becomes special because it comes as tax credits, single moms can claim this since no spouse contends. For instance, on child-tax credit, single moms claim this to deduct from her taxable income because it’s simply apt. A child is dependent to her, even if a father acknowledges the child; claiming tax credits is still hers.
For instance, if a single mom earns $40,000 a year, and has two children under the age of 17. It means that she supports alone her children, the household expenses and education expense. If there is no special tax debt relief for this mother, what kind of life will she lead with her children?
Another instance of a tax debt relief for single mom is a child care tax credit. To single working mom, she needs to pay for a nanny to look after her kids while she’s working. As such, a single working mother can claim a child tax credit for up to 35% of its child care expenses. For example, if she has two kids to care, she could get up to $6,000 child care tax credit.
In addition to these, as a single mom, she can also claim as the “the head of the family”. A head of the family is allowed by IRS to claim a higher standard deduction. So being a single mother in this case has an advantage over taxation, because she is a mother and a head of the family at the same time.
These tax recognitions for single mothers are basic taxation rules that may also come as tax debt relief. This means that they have fewer worries during a taxation period because she’s not prone to having back taxes or tax balance. It’s better than having to ask for tax settlement or other forms of tax debt relief. So tax credits that single mothers have access are the reason why it seems they have taxed debt relief privilege.