Tax Deductions and Credits Treat Your Single Self With These Tax Benefits Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by Elle Martinez Published Feb 15, 2019 - [Updated May 6, 2022] 4 min read Now that we’re in the heat of tax season, have you started filing your taxes yet? We managed to get my husband’s W-2 in the mail along with some 1099s, so I spent last weekend entering them into TurboTax (love how easy it is to knock out some work with TurboTax, save it, and be able to pick up where I left off). But that’s the interesting thing when you’re married, you have two sets of paperwork to wait on before you can submit your taxes. However, if you’re living the single life, you can usually knock it out quicker since you’re not waiting on spouse’s forms. Another benefit for single filers is that they have plenty of tax deductions and credits that they can qualify for which minimizes taxes and in some cases, maximizes their tax refund! With the new tax law changes, there may be some bigger changes that may impact the way you file. It’s easy to get lost with all the noise, so I want to highlight five of the tax benefits to help you claim the most and get the tax refund you deserve. Standard Deduction When you file your taxes, you have the option to take the standard deduction or itemize them. One of the biggest differences between last year and this year is the amount of the standard deduction. Last year for someone filing single it was $6,350, but this year, it’s $12,000 – that’s a significant difference right off the bat! If you’re a single parent and filing as head of household, your standard deduction went from $9,350 to $18,000. Now going with a standard deduction is less involved, but it might not be the best move financially if you have itemized tax deductions that add up to more than the standard deduction. It’s best to go with the option that benefits you the most and gives you the biggest tax refund. TurboTax will ask you simple questions about key tax deductions like your home mortgage interest, property taxes, and charitable deductions up front and calculate whether you will benefit from the standard deduction or itemized deductions simplifying your tax experience. You can also check out our Standard vs. Itemized Deduction Interactive to get an estimate if you plan to claim the standard deduction or itemized deductions. You may qualify for the standard deduction, but here are some other tax credits and some itemized tax deductions that you can also check out. Saver’s Credit Don’t you love when you do something good and get a reward on top of it? Well, welcome to the saver’s credit. You can stash away money for retirement in a 401(k), 403(b), 457 plan, traditional IRA, or SEP IRA and you may qualify to get a tax break. This non-refundable tax credit is designed to help low to moderate income savers. The maximum adjusted gross income for eligibility for single filers in 2018 is $31,500. Student Loan Interest Graduated from college? Chances are that degree came with a price tag. Right now, the average amount of student loan debt is over $37,000! That’s a huge hit to your budget, but if there’s a financial silver lining with that debt, it’s the fact you can deduct the interest you pay on those loans. As a single filer, you can deduct as much as $2,500 of student loan interest. Charitable Contributions To give is kind, so to track your charitable contributions is a smart tax move and your charitable contributions may be very helpful to you as a tax deduction. Keep those receipts (or pdf files) from qualifying organizations in a handy spot. As a general rule, deduct the fair market value of the property (and no more than 60 percent of adjusted gross income, depending on the organization you donate to). Home Mortgage Interest Buying a home is typically one of the biggest purchases we make. It can also be a sweet tax deduction if you can itemize your deductions. Do you own a home? You may be able to reduce your taxable income by claiming the interest you paid on your mortgage. Your Take on Taxes There you have it – some tax benefits to check out! Now it is time to maximize your tax deductions and credits so you can get the biggest refund you deserve. I’d love to get your take on taxes. Which tax benefits do you qualify for this tax season? What are you planning on using your tax refund for? Don’t worry about knowing these tax rules. TurboTax will ask you simple questions about you and give you the tax deductions and credits you’re eligible for based on your entries. If you have questions, you can connect live via one-way video to a TurboTax Live CPA or Enrolled Agent with an average of 15 years experience to get your tax questions answered from the comfort of your couch. A TurboTax Live CPA or Enrolled Agent can also review, sign, and file your tax return. Previous Post Myth Busted! 8 Common Tax Misconceptions Debunked Next Post What Does My Relationship Status Mean for My Taxes? Written by Elle Martinez Elle helps families at Couple Money achieve financial freedom by sharing tips for reducing debt, increase income, and building net worth. Learn how to live on one income and have fun with the second. More from Elle Martinez Visit the website of Elle Martinez. Follow Elle Martinez on Facebook. Follow Elle Martinez on Twitter. 2 responses to “Treat Your Single Self With These Tax Benefits” Before singing the praises of the doubled standard deduction, you might also note that the $4000 personal exemption is gone. This reduces the value of that doubling to $8000. Now if you factor in the $4000 personal exemption that is gone, plus the former $6350 standard deduction, that reduces the increase in standard deduction to $12,000 – $4000 – $6350 = $1650. And that’s not a tax cut, it just means that you need $1650 more in deductible expenses (many of which, such as long term care insurance premiums, investment fees, state and local taxes over $10,000, unreimbursed employee business expenses, tax prep fees, and so on, have been eliminated and are no longer deductible) in order to not itemize. Please be truthful about what the tax changes actually mean. Hi Brilliantatbreakfast, Thank you for your comment. The writer is highlighting just some of the tax deductions available. We also don’t talk about the child tax credit available of $2,000 and correct we don’t mention the deductions that have gone away. Here is a graphic that talks about what has been eliminated and gives options of what you can still do to try and help taxpayers https://blog-turbotax-intuit-com-prelaunch.go-vip.net/tax-reform/3-tax-deductions-are-going-away-due-to-tax-reform-heres-what-you-can-still-claim-infographic-42189/ Best, Lisa Greene-Lewis Browse Related Articles Crypto Understanding Crypto and Capital Gains Work 7 Things You Need to Know About the New Business Report… Work Using Form 8829 to Write-Off Business Use of Your Home Tax Tips Roth 403(b) vs. Roth IRA: Which Should You Invest In? Life Interest Rates, Inflation, and Your Taxes Investments Essential Tax Tips for Maximizing Investment Gains Uncategorized TurboTax is Partnering with Saweetie to Elevate Hoop Dr… Business Small Business Owners: Optimize Your Taxes with a Mid-Y… Small Business The Benefits of Employing Your Children and the Tax Bre… Income and Investments Are Olympics Winnings Taxed?
Before singing the praises of the doubled standard deduction, you might also note that the $4000 personal exemption is gone. This reduces the value of that doubling to $8000. Now if you factor in the $4000 personal exemption that is gone, plus the former $6350 standard deduction, that reduces the increase in standard deduction to $12,000 – $4000 – $6350 = $1650. And that’s not a tax cut, it just means that you need $1650 more in deductible expenses (many of which, such as long term care insurance premiums, investment fees, state and local taxes over $10,000, unreimbursed employee business expenses, tax prep fees, and so on, have been eliminated and are no longer deductible) in order to not itemize. Please be truthful about what the tax changes actually mean.
Hi Brilliantatbreakfast, Thank you for your comment. The writer is highlighting just some of the tax deductions available. We also don’t talk about the child tax credit available of $2,000 and correct we don’t mention the deductions that have gone away. Here is a graphic that talks about what has been eliminated and gives options of what you can still do to try and help taxpayers https://blog-turbotax-intuit-com-prelaunch.go-vip.net/tax-reform/3-tax-deductions-are-going-away-due-to-tax-reform-heres-what-you-can-still-claim-infographic-42189/ Best, Lisa Greene-Lewis