EITC and Tax Credits for Single Mothers in Kentucky

Where to start

• Worked: Check EITC; keep W-2s, 1099s, and gig-work records.
• Have children: Check child credits and shared-custody rules.
• Paid for care: Gather provider details and payment totals.
• Owe state tax: Check family size, care, and education credits.
• Got a tax letter: Keep it and check its deadline.

What has changed since June 2026?

The normal October 15 extension deadline for 2025 returns is over. The IRS 2026 Free File notice said the guided service for 2025 returns ran through October 15, so check the current filing options instead of assuming that service remains open.

For income earned in 2026 and usually filed in 2027, the IRS has published higher EITC amounts and a more generous federal Child and Dependent Care Credit. Kentucky’s 2026 withholding rate also dropped from 4% to 3.5%. These changes do not replace the rules for a 2025 return.

Federal EITC for tax year 2025

The federal EITC helps some people who worked and had low or moderate income. Wages, tips, some gig income, and net self-employment income can count as earned income. Child support, SNAP, unemployment payments, and ordinary Social Security benefits are not earned income for EITC.

The IRS checks both earned income and adjusted gross income, filing status, and children. These are 2025 limits, not promised payments.

The 2025 investment income limit is $11,950 or less. Only one claimant can use the same child for EITC. Check the official EITC tables, then try the IRS EITC Assistant for your filing year.

Who can qualify?

For EITC, you, a spouse on a joint return, and each child claimed must have valid Social Security numbers. An ITIN does not count. Citizenship or full-year resident-alien rules also apply. Read the IRS eligibility rules.

An EITC child must meet relationship, age, U.S. residence, and joint-return tests. Most children are under 19, or under 24 if full-time students; a permanent and total disability may change the age rule. Review the EITC child tests before you file. Some adults without a qualifying child can still get EITC, but other age and residency rules apply.

Shared custody and married-but-separated parents

Custody orders alone do not decide EITC. Where the child lived matters. A release that lets the other parent claim some child tax benefits does not transfer EITC. See IRS separated-parent rules.

Some separated spouses can claim EITC without filing jointly. Special rules apply. Living alone does not by itself allow head-of-household status. Ask a tax preparer to check.

Federal EITC for income earned in 2026

Tax year 2026 is different. Most people will report this year’s earnings on a return filed in 2027. The IRS has set these 2026 maximum credits: $664 with no qualifying children, $4,427 with one, $7,316 with two, and $8,231 with three or more.

For 2026, the EITC income cutoffs for single or head-of-household filers are under $19,540 with no qualifying child, $51,593 with one, $58,629 with two, and $62,974 with three or more. Joint filers have different limits. The investment income cap is $12,200. These numbers come from the IRS 2026 tax adjustments. Check your exact filing status before planning a refund.

Kentucky’s 2026 withholding rate is 3.5% with a $3,360 standard deduction. Its 2025 return used 4% and $3,270. Do not mix years. See Kentucky’s 2026 withholding formula.

Child Tax Credit and other dependents

For tax year 2025, the federal Child Tax Credit can be worth up to $2,200 for each qualifying child under age 17. The Additional Child Tax Credit is its refundable part, up to $1,700 per qualifying child. The refundable part also depends on earned income and other rules. For 2026, those dollar caps stay at $2,200 and $1,700 under the published IRS rules.

To claim the 2025 Child Tax Credit or Additional Child Tax Credit, the qualifying child must have a work-eligible SSN by the return due date, including extensions. The taxpayer must also have one. For married joint filers, at least one spouse must have a work-eligible SSN; the other generally needs an SSN or ITIN issued on time. The old statement that both joint filers always need work-eligible SSNs was too broad.

The child also has age, relationship, support, residence, dependency, and status rules. The IRS Child Tax Credit guide explains the main tests, and Schedule 8812 instructions show how the amounts are figured.

The nonrefundable Credit for Other Dependents may lower taxes for some older children, students, or other dependents. It does not pay out by itself.

For more federal details, see our tax credits and filing guide.

Child and dependent care tax credits

The federal Child and Dependent Care Credit may help if you paid for care so you could work or look for work. It may apply to a child under 13 or someone who cannot care for themself and meets the residency and other rules. It is generally not refundable. You normally claim it on Form 2441.

For 2025 expenses, the credit was based on 20% to 35% of qualifying expenses, subject to tax-law limits. Starting with 2026 expenses, the federal percentage can be as high as 50% for some lower-income filers. The 2026 maximum credit can be $1,500 for one qualifying person or $3,000 for two or more. The actual credit depends on income, qualifying costs, and other rules. Check the IRS child care credit page for the correct year.

You generally need the care provider’s full name, address, and taxpayer identification number. You cannot count care paid to your spouse, your dependent, your child under 19, or the parent of your qualifying child under 13 under the listed federal exclusions. If your employer paid dependent care benefits, ask a tax helper how those amounts affect your claim so you do not use the same expense twice.

Kentucky’s separate child care credit

Kentucky has a child and dependent care credit equal to 20% of the federal credit under its current rules. It is claimed on the state return, not paid by a child care office. Kentucky says to use the relevant amount from federal Form 2441 when completing Form 740 or 740-NP. The Kentucky income tax guide confirms the state calculation. This state credit may be limited by state tax owed and your Kentucky residency.

If your provider will not give a tax ID

Keep invoices, receipts, and messages. Never invent a tax ID. Ask a preparer how to handle a provider who will not share it.

Need care paid now? Ask Kentucky about its Child Care Assistance Program. A subsidy is not a tax credit.

Kentucky state credits to check

A federal refund does not mean a Kentucky refund. Most state credits only reduce state income tax. Rules differ for residents and part-year residents.

The Family Size Tax Credit uses family-size bands. Kentucky’s 2025 poverty thresholds were $15,650 (one person), $21,150 (two), $26,650 (three), and $32,150 (four or more). The credit can extend above these limits. See Kentucky Form 740 for details.

For school costs, check federal education credit rules and Kentucky’s school rules. If you moved, ask which state returns you need.

Free filing and tax help in Kentucky

Start with the IRS free tax filing options. For the 2026 filing season, guided IRS Free File generally served people with 2025 adjusted gross income of $89,000 or less. Some partners offered a free Kentucky return too. The 2025 guided filing season ended October 15, 2026. Check current availability for late and prior-year returns; do not assume every partner still accepts them.

Kentucky posts its own free filing software offers. Some require federal and state returns to be filed together. There is also KY File, a free Kentucky state form tool for supported current-year returns. KY File does basic math checks but does not guide you through complicated tax questions. Finish the federal forms first. Check whether late filing is still accepted through that tool.

If you want a person to help, check IRS VITA and TCE, then use the VITA site locator. VITA helps many people with low to moderate income, disabilities, or limited English. Kentucky’s 2025-season information used a general income limit of $69,000, but rules and appointments depend on the site and season. Many locations do not operate year-round. Kentucky Revenue’s program does not prepare Schedule C or Schedule SE, so self-employed filers should ask what the site can handle.

The Kentucky free preparation page and taxpayer service centers can help you find options. If you have an IRS dispute or complex credits issue, a Low Income Taxpayer Clinic or a qualified tax professional may be a better fit than basic free preparation.

Documents to gather

Gather federal and Kentucky forms in one folder. Keep copies of notices and proof of filing.

Use Kentucky’s VITA appointment checklist. If a form is missing, contact the payer. Do not guess.

If your refund is late or a credit is denied

For early-season claims of EITC or Additional Child Tax Credit, the IRS holds the whole refund until at least mid-February. Other checks may take longer. This hold does not make an October-filed return wait for the next February.

Check Where’s My Refund? for federal tax and the Kentucky refund tracker for state tax. Do not file a second return just because the tracker is slow. If you moved, update your address with the tax agency.

Read notices and act on time

Read each letter, keep the envelope, and write down its response or appeal deadline. Ask which records the tax office needs. If you disagree, ask about correction, review, or appeal options stated in that notice. Deadlines depend on the kind of tax letter; do not assume a benefits appeal deadline is the same as an IRS tax deadline.

When the IRS disallowed EITC, child credits, the Credit for Other Dependents, or the American Opportunity Tax Credit in an earlier year, you may have to file Form 8862 before claiming it again. It is not needed in every situation. If you have already tried to fix a serious IRS problem and face hardship, ask Taxpayer Advocate Service whether it can assist.

For tax identity theft, check the IRS IP PIN guide. Never share your tax IDs or PIN with an unexpected caller.

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