While the tax code does not specifically provide breaks for single ladies, there are many tax deductions that a single lady may be able to claim. One of the biggest mistakes that many tax filers make is neglecting to claim all eligible deductions. Understanding the expenses that are deductible will help you to find ways to lower your tax burden.
If you are attending a college, university or other institution of higher learning, the expenses that you pay out of pocket will make you eligible for a number of tax deductions. In addition to tuition, you can also deduct the costs of books, fees, travel and other expenses directly related to pursuing an education. If you are still paying on student loans, the interest that you paid during the tax year will also make you eligible for a tax deduction.
If you are a single parent, many of the costs of raising a child will make you eligible for a number of tax deductions. For example, costs paid for child care so that you can work and medical expenses (including medical transportation costs) are both deductible expenses. If you are caring for a dependent at least half of the year, you may be eligible to file as Head of Household. This filing status will provide you with a significantly lower tax obligation than filing as an individual.
The contributions made to a 401k or most other retirement plans will reduce the tax burden of the investor. Contributing to a retirement plan is a smart idea to plan for the future as well as an efficient way to lower the amount of taxes that you will owe in a given tax year. Even if your employer does not provide you access to a retirement plan, there are a number of individual retirement plans that offer tax advantages.
While there are many companies that heavily market their tax preparation services, in most cases it is a better financial decision to complete your tax filing online. The IRS provides links to various free tax preparing services that allow you to complete your return online. These websites will walk you through the filing process and charge you much less than will a retail tax preparer. Filing your own taxes will also help you to learn about the tax process, giving you an opportunity to uncover ways to lower your tax bill for next year.
- 8 Most Missed Tax Deductions (turbotax.intuit.com)