If you are a single parent in New Jersey — raising children, working full time, possibly running a small business on the side — your tax return is more complex than most people realize. And the credits you qualify for are also more valuable than most people know.
Head of household filing status is one of the most misunderstood areas of the tax code. It can significantly reduce your tax burden. It can also trigger an audit if it is claimed incorrectly.
Here is what you need to know.
What head of household filing status means
Head of household is a filing status available to unmarried taxpayers who pay more than half the cost of keeping up a home for a qualifying person — usually a child. It gives you a higher standard deduction and lower tax rates than filing as single.
For 2026 the standard deduction for head of household filers is significantly higher than for single filers. That difference directly reduces how much of your income is taxed.
The most common mistake that triggers audits
The IRS pays close attention to head of household claims — particularly around the qualifying child test. The most common errors involve the residency requirement. Your child must have lived with you for more than half the year. In shared custody situations this becomes complicated quickly.
Research shows that Black taxpayers are audited at nearly five times the rate of other filers — and EITC and head of household claims are central to that disparity. This is not because of anything wrong. It is because the rules are complex and errors are common when you do not have professional guidance.
The credits available to head of household filers
If you file as head of household you may qualify for:
The Earned Income Tax Credit — worth up to several thousand dollars depending on your income and number of children. This is the most valuable refundable credit available to working parents.
The Child Tax Credit — up to $2,000 per qualifying child with a refundable portion available to lower income filers.
The Child and Dependent Care Credit — if you pay for childcare while you work or look for work.
Each of these credits has its own rules and income limits. Getting all of them right on a single return — while also reporting W-2 income, possible 1099 income, and New Jersey state obligations — is exactly the kind of complexity that benefits from professional help.
What TryUnity does differently
At TryUnity Services we do not just check the boxes and file your return. We review every credit you qualify for, confirm your filing status is correct, and make sure your documentation supports every claim on your return.
We also explain everything in plain language so you understand exactly what your return says and why. Because when you understand your taxes you make better decisions all year long — not just in April.
If you are a single parent in New Jersey navigating head of household filing, the EITC, or multiple income streams — book a free 30-minute consultation with Charlene Brewer. Let us make sure you keep every dollar you are entitled to.
TryUnity Services — financial empowerment for the Black community in New Jersey and virtually nationwide.