Tax Saving Tip 2023: What are the eligibility requirements for the Single Parent Allowance? Can I claim it if I am divorcing?

Single-parent families are a special group of people who have to take care of their children on their own and bear more stress and burden. Fortunately, the government offers a Single Parent Allowance to help single parent families with some financial assistance, reducing their tax burden and giving them more resources to spend on their children. This article will introduce the requirements and considerations for the Single Parent Allowance to help single-parent families understand this tax benefit.

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Table of Contents

Single Parent Allowance?

Qualifying for the Single Parent Allowance

What is the difference between the child allowance and the single parent allowance?

Single Parent Allowance?

The Single Parent Allowance is a tax-free benefit provided by the Hong Kong government to help single-parent families reduce their tax burden. Single parents who meet the eligibility criteria can enjoy the Single Parent Allowance when filing their tax returns to reduce the amount of tax they have to pay.

The Single Parent Allowance is limited to $132,000 and applicants must meet certain family status and income limits and provide supporting documentation. The Single Parent Allowance needs to be reapplied for annually in order to be eligible for this tax-free benefit for tax filing purposes.

Eligibility for the Single Parent Allowance

Under Section 32 of the IRS Code, a taxpayer must be single, married but separated, divorced or widowed from his or her spouse for the entire year of the tax year in which the single parent allowance is claimed.

If the taxpayer is married, divorced, widowed or separated from his/her spouse during the year of assessment, he/she cannot claim the Single Parent Allowance during that year and will not be eligible for the benefit until the next year of assessment at the earliest.

In addition, the applicant must be the sole or primary breadwinner of a child for the entire year and claim the Child Allowance for that child. It is important to note that if the child’s living and education expenses are paid jointly by the parents, the parents may allocate the child’s allowance in proportion to the amount each paid, and in the event of a dispute, the Commissioner of Revenue has the authority to make the allocation under the law.

Under the law, a parent cannot claim a single parent allowance for paying for the child’s living and education expenses during the tax year. In addition, a parent may not claim an additional single parent allowance for the care and custody of a second or other child for residential purposes.

What is the difference between the Child Allowance and the Single Parent Allowance?

The child allowance is a tax benefit for parents who pay for the living and education expenses of their children, while the single parent allowance is a tax benefit for the sole or primary care and custody of a child.

Both of these tax benefits are designed to help families reduce their financial burden, but the requirements and limits for each are different. The Child Allowance is granted to a parent for the support of a child during the tax year, while the Single Parent Allowance is granted to a parent for the sole or primary care and custody of a child during the tax year. The above information is provided for reference. If you have any questions or information about filing tax returns (personal tax returns, corporate tax returns, accountant tax returns), you are welcome to contact our professional advisors and we will provide you with a free quote and consultation service later.