Will I owe Taxes? I make $22 K / year , single mother ...?
Answers:
With your standard deduction and personal exemptions your taxable income will be reduced to something like $7800 on which the tax would be $785 but your child care credit will reduce that to zero even before you get to child tax credit. Of the refundable credits you will get EIC of about $1600 and some of the $1,000 Additional Child tax Credit (I can't do the calculation for that one in my head). So reducing your allowances to have zero withholding will be just fine. The only caution is an event in which your income increases you will need to reconsider the approach.
Why not just pay taxes as you go and then be happily surprised by the refund you get? I, too, am a single mother and that's what I do. It never fails...there is always some unexpected cost that comes up around refund time and I wouldn't be able to pay if I had not had that extra money. It's always better to get money back than to have to pay for something unexpected!! Don't you think?
Actually, the $1000 child tax credit will probably wipe out any tax you'd owe, so the child care credit probably won't even apply. Then you'll get about $1600 EIC. So you shouldn't owe anything even if you claim exempt, and would still get money back due to EIC.
Good luck.
Judy is correct you should be OK
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