5 Reasons It’s Great to Be Single at Tax Time

Tax Planning A young, beautiful woman with curly hair laughing against a white brick wall

No Valentine’s Day date? No problem! Being single brings several big upsides, like having the freedom to spend your time and money on the things that are important to you, and you alone! Though getting married is a well-known tax advantage, being single can also come in handy come refund season. So let’s toast to Galentine’s Day (or any other singles celebration) with these five reasons why it pays to be riding solo at tax time.

You Can Get the Same Deduction for Your S/O as a Spouse

A boyfriend or girlfriend can be claimed as a dependent if they pass some of the same tests used to determine if your child or relative can be claimed as a dependent (You can read about the tests here). Each dependent lets you claim a dependent exemption, reducing your taxable income by $4,050 per dependent for 2017. Important: due to the new tax reform legislation, this is the last year you will be able to claim this deduction so if you’re supporting your boyfriend or girlfriend don’t miss out on this deduction.

It May Be Easier to Qualify for Educational Tax Credits

The American Opportunity Tax Credit provides a credit of up to $2,500 per student off of the taxes you owe if you paid for eligible college expenses for yourself, your spouse, or your dependent. There’s also the Lifetime Learning Credit, that provides a credit of up to $2,000 per tax return for graduate studies and continuing education, but there are income limitations to both, and a spouse’s income could put you beyond the limit.

The full amount of the American Opportunity Tax Credit is available for individuals with a Modified Adjusted Gross Income (MAGI) of $80,000 or less or $160,000 for married filing jointly. The full Lifetime Learning Credit is available for MAGI up to $66,000 for single filers, and up to $132,000 for married filing jointly.

No “Newlywed Surprise” On Your Taxes

After getting married, many individuals forget to review their tax withholding with their employer. For some, that means they aren’t withholding enough and may owe at tax time. When you experience life changes, it’s a good time to look at how your taxes would be impacted. Marriage or divorce can change your tax situation, as well as the addition of a dependent, by birth, adoption, or an elderly parent moving in and getting more than 50% of their support from you will qualify as an extra exemption. No spouse? You may not need to check your W-4 if you didn’t have any life changes. High five!

You Don’t Have to Deal with Someone Else’s Tax Debt

When you pledge “’til death do us part,” you’re also pledging to be liable for your husband or wife’s tax debt. That’s right! If your spouse owes back taxes, you are also responsible for those debts in the eyes of the IRS if you file jointly. The IRS has 10 years to collect the taxes that you owe, so it’s not something that will go away quickly. If you are single you don’t have to worry about how you’re going to handle your spouse’s debt.

HBIC: Head Bae In Charge

If you are not married, you may be able to file as a head of household as long as:

  • You are unmarried or considered unmarried on the last day of the year.
  • You paid more than half the cost of keeping up a home for the year.
  • A qualifying dependent lived with you in the home for more than half the year (except for temporary absences, such as school). However, if the qualifying person is your dependent parent, he or she doesn’t have to live with you.

What can claiming HBIC (Head Bae In Charge) get you? You will see a bigger standard deduction of $9,350 for the head of the household instead of $6,350 for single.

Single is fabulous! Enjoy every minute of it, no matter how long it lasts. And don’t worry about knowing tax laws or forms, TurboTax will ask you simple questions about you and give you the tax deductions and credits you are eligible for based on your answers. You can also connect live via one-way video to a TurboTax Live CPA or Enrolled Agent to get your tax questions answered. A TurboTax Live CPA or Enrolled Agent can also review, sign, and file your tax return.

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