The Tax Cuts and Jobs Act (TCJA), enacted in 2017, brought about significant changes to the United States federal income tax system. Among the various provisions, modifications to the standard deduction, child tax credit, and dependent care credit had notable impacts on households, including those headed by single parents. These changes, while not explicitly targeting single parents, altered the tax liabilities of this demographic due to their specific financial circumstances and reliance on certain deductions and credits.
The standard deduction nearly doubled under the TCJA, potentially reducing the tax burden for some single parents who previously itemized deductions. However, the elimination or limitation of certain deductions, such as the state and local tax (SALT) deduction, may have offset these gains for single parents living in high-tax states. The increase in the child tax credit provided a benefit to many families with children, including those headed by single parents. However, the availability of the full credit was subject to income limitations, and the changes to dependent care credits also affected the tax obligations of single-parent households relying on childcare services to facilitate employment.
