Infographic of the Day: Unmarried With Kids? Who Claims the Baby?

November 9th, 2014
in News, econ_news, syndication

The number of births to unmarried women has been falling, however, it’s now become more likely that those unmarried women aren’t truly single – they’re in a cohabiting relationship. In fact, for the first time, cohabiting births exceed single-parent births.

Follow up:

Besides being a fun statistic to throw out at dinner, this arrangement actually causes some tricky tax complexity for these couples. Married couples can claim their children and related tax benefits by filing jointly. Cohabiting couples can’t. Even if cohabiting couples share expenses and the responsibility for their child, they will still have to decide which one will claim the child.

Rather than both parents using the single filing status, which will limit certain tax benefits, one of the parents will likely qualify to file as head of household. Filing as head of household will increase that parent’s standard deduction from $6,100 (for single filers) to $8,950 and will usually lower their tax rate. In this situation, a taxpayer must pay more than half the cost of household expenses and maintenance for the year to qualify to use the head of household filing status.

We look at this kind of scenario, as well as a couple others, in the infographic below. And – one more reminder! – each tax situation is unique. With complicated issues like this, it’s best to consult with a tax professional on your specific case.

(click here for larger image)

Unmarried With KidsUnmarried With Kids via H&R Block









Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.















 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved