Head of Household
While not technically a credit, filing as head of household can result in greater exemptions that reduce the taxes that are owed. Instead of filing tax returns as single, solo parents can switch to head of household if their children cumulatively lived with them for more than half the year and if they provided more than 50 percent of the financial support for their household.
Filing as head of household instead of filing as single can boost tax exemptions by several thousand dollars. For example, taxes filed in 2015 for the tax year 2014 are eligible for a standard deduction of $6,200 for single filers. The standard deduction rises to $9,100 for head of household filers.
If a single parent decides to switch his or her tax filing status from single to head of household, he or she can expect a greater portion of their income — nearly $3,000 — to remain untouched by taxes. It's a significant amount of untaxed, earned income that can positively impact the bottom line [source: Erb].