5 Tax Deductions and Credits for Working Moms

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If you’re anything like me, being a working mom doesn’t mean your work stops at the office, but continues well after the end of the workday each day.

Being a working mom can be both rewarding and challenging. You have the satisfaction of being able to provide for the family and meeting your career goals.

With this satisfaction comes the challenge of balancing your work schedule with spending time with the family. And although you are able to help provide for the family, expenses you incur to go to work everyday like daycare can really add up.

To show appreciation for your hard work as a working mom, the IRS has some tax deductions and credits that may help offset some your costs at tax time.

Here are five of them:

  1. Child and Dependent Care Credit – If you have children under the age of 13, you may be able to claim a tax credit if you pay someone to care for them while you are at work or looking for work. Depending on your income, that could save you up to $1,050 for one child or $2,100 for two or more.  Just coming off summer, you’ll be glad to know that summer day camps may qualify.
  2. Earned Income Tax Credit – The IRS gives you a special credit just for going to work, which can be worth up to $6,269 for 2016. How much of the Earned Income Tax Credit you can earn and qualify for depends on your income and how many dependent children you have. For 2016, if you have three or more children, you can earn up to $47,955 and qualify. With two children, that drops to $44,648. If you have one child your income can’t top $39,296.
  3. Travel Expenses for Work Conferences and Events – As career women we are constantly working to improve our skills or expand our professional network. If you traveled for seminars or conferences, whether you have an employer or are self-employed, you may be able to deduct your travel expenses as long as your travel has a direct relationship to the business purpose and if employed, you were not reimbursed.
  4. Moving Expenses – If you secured a new job in your same profession you may be able to deduct the costs associated with your move, including the cost to move you and your stuff, storage, and even travel.
  5. Office Expenses – So many working moms are starting their own businesses and maintaining a home office enabling them to have the luxury of working at home so they can be closer to the kids and have a flexible schedule. If you have a home office, you may be able to deduct a portion of your household expenses based on the amount of space your home office takes. You also may be able to deduct your equipment, furniture, and supplies within your home office.

These are just some of the tax breaks TurboTax checks for to help you keep more money for the family.

 

 

Lisa Greene-Lewis

Lisa has over 20 years of experience in tax preparation. Her success is attributed to being able to interpret tax laws and help clients better understand them. She has held positions as a public auditor, controller, and operations manager. Lisa has appeared on the Steve Harvey Show, the Ellen Show, and major news broadcast to break down tax laws and help taxpayers understand what tax laws mean to them. For Lisa, getting timely and accurate information out to taxpayers to help them keep more of their money is paramount. More from Lisa Greene-Lewis

One response to “5 Tax Deductions and Credits for Working Moms”

  1. I noticed you mentioned credit for moving expenses.

    I moved last year, august 2013, I have been paying for storage for the last 2 1/2 years. Can this expense be claimed or credited? How? I don’t think my adviser asked about this last year.

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