Filing taxes is not something anyone looks forward to. However, it’s much easier to understand the deductions, credits, and other advantages you might get when you file with a tax professional every year.

Some of these perks are available for single filers, who might have better options for saving money during tax season. Here’s what single tax filers need to know before tax day rolls around.

Key Takeaways

• There are some top strategies for saving on taxes as a single person, including the use of health flex plans and smart retirement planning.
  
  
  

• Filing as a single person can be much simpler than any other filing status option.
  
  
  

• You should always direct any questions about tax filing status to a tax professional. Proper advice ensures you stay in compliance with tax laws.

  
  

What Does It Mean to File As a Single Person?

Filing as a single person means you’re unmarried and file taxes on your own income. To file as head of household, you must be unmarried and pay more than half the cost to maintain a home. Unmarried individuals who do not file as head of household can file under single status.

A single filer includes people who are:

• Unmarried

• Legally separated with a divorce

• Have a separate maintenance decree

If you’re married but have not lived with your spouse for at least six months of the tax year, you’re considered an unmarried head of household if you paid for more than half of the costs.

Filing as a widower or head of household will often result in a lower tax bill than filing as a single filer. However, you can still lower your tax bill as a single filer.

How to Save on Taxes As a Single Person

You might have heard filing as a single person can cost you more in taxes. However, you might be surprised to learn how many ways you can save on taxes when filing as a single-payer. 

Start Using Your Health Flex Plan 

If your employer offers medical reimbursement or a health flex plan, take full advantage of it. You can contribute up to $2,500 per year to a health savings plan. 

When you put the money into this plan, you avoid income and Social Security tax. You could save anywhere from 20% to 35% when you pull the money to pay for prescriptions, copays, and more.

Transfer Money To a Roth 401(k) 

One of the big advantages of using a 401(k) is you get a tax break when you put money into the account. You don't get that initial tax break if you put your money into a Roth 401(k). However, you do get tax-free withdrawals during retirement. This can be a significant advantage over the regular 401(k), where you can expect to be taxed in your top tax bracket when you withdraw it.

If you don’t want to move the money to your current 401(k), open the Roth option and begin depositing money into it. This is a great way to diversify your money and prevent a major tax hit in the future.

Pay Taxes on Restricted Stock

If your employer offers restricted stock options, you can make an 83(b) election. This means you pay tax immediately on the stock's value rather than waiting until it fully vests. You must make this choice within 30 days of being awarded the restricted stock.

So, why would you go this route? You pay tax on the money at some point regardless. So paying the taxes in the beginning means you might pay much less than if you wait until it vests. The whole point of holding stock is to watch it grow, so pay taxes while the dividends are minimal.

Get Paid for Your Education 

If you pay for your tuition, you might qualify for the Lifetime Learning Credit. 

Corey Hulstein, a CPA and director of tax at Modern Wealth Management says:

“The lifetime learning credit is a college credit eligible through your tax return for any students going through post-secondary education…

The lifetime learning credit is based on $10,000 of qualifying education expenses, where you receive 20% of tax credits up to $2000 maximum…

The current phase-out ranges from $160,000 to $180,000 for a married filing joint couple. For a single taxpayer, this is going to be just $80,000 to $90,000. If you fall somewhere in between this range, the taxpayer will be eligible for a portion of this credit.”

Claim Any Job-Hunting Expenses 

If you’re looking for a job in your usual line of work, you can deduct some job-hunting expenses, including traveling to interviews and the costs incurred. 

This might include food, lodging, and transportation. Though these are considered miscellaneous expenses when filing your taxes, a few interviews in far-flung areas can make a nice addition to your itemized deductions.

Keep Track of Moving Expenses for a New Job

Did you get the job? Congratulations! If your new job is at least 50 miles away, you can deduct the cost of moving to a home closer to your new workplace. This includes the cost of moving yourself and your belongings, any hotels you stayed in during the move, the food you ate while unpacking, and more.

Also, keep in mind you can deduct mileage if you use your own vehicle for the move. The mileage rate changes from year to year, but according to the Internal Revenue Service, it was 67 cents per mile in 2024.

Advantages of Filing Taxes As a Single Person

There are many good reasons to file as a single person compared to other tax statuses. Whether you get to choose or not, here are some advantages:

The Tax Returns Are Easier 

If you don’t have much property or investments, your tax preparation could be so simple that you can easily do it independently. Once you qualify for more deductions or credits, it’s time to hire a CPA or other tax professional. Even then, expect an easier return than if you were married and filing jointly.

Certain Deductions Are Easier To Get

Tax deductions for single filers usually have a lower threshold to qualify, so you might be able to get advantages married filers can’t. For example, a single person might find it easier to get certain medical and dental expenses deducted. 

Those costs must exceed 7.5% of your adjusted gross income to qualify for the deduction. This is much easier for a single person, as they typically have a lower adjusted gross income than a couple filing together.

If you’re unmarried and have a dependent, remember you can file for head of household, which gives you a bigger standard deduction.

You Don’t Owe Anyone Else’s Taxes

Did you know that in the United States, when you marry your spouse, you also marry their tax liability? If your spouse owes back taxes, they become your responsibility once you marry and file jointly. As long as you stay single, you aren’t responsible for paying back anyone else’s debt.

The Importance of Involving a Tax Accountant

There are many good reasons to hire a tax accountant. A professional can save you time, as they already know the ins and outs of tax law. They can also save you money by finding deductions, credits, and other opportunities to leave more money in your pocket.

The biggest benefit is peace of mind. When a tax professional handles your taxes, they walk you through the return and answer any questions. 

They also stand by their work. If they make an error that results in you owing more money to the IRS, many have policies to pay for that error so you don’t have to.

Frequently Asked Questions (FAQs)

How can a single person save on taxes in the USA?

Be careful to withhold enough to cover taxes during the year, file on time, and contribute to accounts that lower your tax liability (such as a retirement plan). Another good way a single person can save on taxes is by planning carefully with a tax professional. They can walk you through the tax implications of changing jobs, buying your first home, and more.

What is the difference between single and married filing separately?

Filing as a single person means you do not have a spouse. When you’re married and filing separately, you have a spouse but choose to file separate tax returns for various reasons.

Married filing separately is often used by those who are married but don’t want to be responsible for issues their spouse might have with the IRS. 

It might also make sense to file separately if one spouse has a significant medical expense, and the deduction would be greater if they chose to file separately. Some choose to file separately if they believe their spouse is hiding money and they don’t want to be responsible for any fallout from their choices.

Can I still claim tax deductions and credits if I'm single and don't have dependents?

According to Mark Steber, Chief Tax Information Officer at Jackson Hewitt Tax Services:

“The EITC is what is referred to as a refundable credit. This means the IRS adds the total amount of the EITC you’re eligible for to your tax refund. The federal Earned Income Tax Credit amount changes each year… The amount you get is based on income and family size. In fact, if you qualify, you could get $600 if you have no children, about $4,000 if you have one child, about $6,600 if you have two, or just over $7,400 if you have three or more children.”

Keep in mind that $560 is the maximum you can earn if you are single with no children.

You might be eligible for the Earned Income Tax Credit if you meet all of these requirements:

• You meet the basic qualifications for the EITC.

• You live in the United States for over half of the tax year.

• No one else claimed you as a qualifying child on their tax return.

• You are between the ages of 25 and 65.

If all of these apply to you, talk to your tax professional about getting the credits you deserve.

How can I maximize my retirement savings as a single person to reduce taxes?

Every financial situation is unique, so your retirement option should reflect your needs, wants, and plans for the future.

Some tried-and-true ways to enhance your retirement savings include taking advantage of your employer's 401(k) matching program. But other points might be harder to spot. That’s why it’s so important to talk to a tax professional when filing taxes and consult a financial advisor on which retirement options are the best for you.

What are some common tax deductions and credits that single individuals often overlook?

Those who file taxes on their own might miss some credits that could put money back into their pocket. The costs of owning a home, some medical expenses, and charitable contributions can all give you a tax break. Some gambling losses and student loan interest might also be helpful for your bottom line.

Have your taxes prepared by a professional accountant to ensure you don’t miss any deductions or credits.