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6 Ways Singles Can Cut Their Taxes

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Single people don't enjoy the financial support or security that a spouse can provide. That makes it all the more important to make smart financial decisions to minimize your taxes. Here are six tax tips for singles:



Selena Maranjian is a Motley Fool contributor. Follow her on Twitter.

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What Are the Tax Penalties for Smokers?

Starting in 2014, the Individual Shared Responsibility provision of the Affordable Care Act made you responsible for having minimum essential coverage, or MEC, in health insurance. Otherwise, you need to be eligible for a health care exemption, or you could pay a penalty when filing your income tax return. This requirement for minimum essential coverage applies to smokers and nonsmokers alike. If you're not covered by an employer's health plan and are a smoker, you can go to the health care marketplace to find MEC. If you're still unable to comply, you may have a penalty applied.

5 Steps to Navigate the Healthcare Marketplaces

To navigate the Health Insurance Marketplace, you have to know what you want from a health plan. Have your previous plan handy to make comparisons, as well as household and income information. If this is your first health plan, be aware of your needs and know your tax situation. Eligibility depends on the size of your family and combined income from all sources.

What Is Form 8941: Credit for Small Employer Health Insurance Premiums

Small business owners who subsidize the cost of employee health insurance premiums may be able to get some of that money back by claiming the credit for small employer health insurance premiums on their taxes. Some of the eligibility requirements, however, limit the number of people a business can employ and the average annual wages they earn. Qualifying as a small employer can reduce your tax bill by the amount of the credit you report on Form 8941.

What Is Form 8911: Alternative Fuel Vehicle Refueling Property Credit

In light of rising gasoline prices and environmental concerns, consumers have become more receptive to buying cars and trucks that run on types of fuel other than gasoline. The U.S. government introduced a tax incentive to encourage the installation of facilities to store or dispense alternative fuels in 1992. That incentive has evolved into a tax credit that also applies to equipment that recharges electric cars. If you equipped your home or business to accommodate alternative fuel vehicles, you may be able to use Form 8911: Alternative Fuel Vehicle Refueling Property Credit to reduce your federal tax obligation.

What Is Form 8885: Health Coverage Tax Credit

The health coverage tax credit is a program in place for tax years from 2002 to 2013 to help eligible individuals and families by paying a portion of premiums for qualified health insurance programs. Since the legislation authorizing the credit expired in January 2014, tax returns filed in 2014 for the 2013 tax year represent the last time eligible taxpayers can claim the credit.

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pearlnestor1

This piece wasn't real helpful. Most single people that I know of live paycheck to paycheck. If you start itemizing that just makes the IRS nasty towards you. Also single people are people who NEVER married and don't usually have kids, are on their own with no help from anybody.We stand alone, for better or worse. Of course the problem is a government who believes that single people can live off of air and don't have the right to have a prosperous life, couple that with employer's who have told me that even though I was in line for a promotion I didn't get it because so and so had a family to support and I didn't. It just seems like the whole world wants to punish you for not being married and making babies. I shudder every time more tax breaks are given to married people or people with children, because that means mine are going up. I don't want to get married, but may have to if I want a good retirement. I don't know if a marriage of convenience is against the law but I have considered it at times. I'll probably marry some bum off the street before I die just so my social security doesn't go to waste.

April 02 2014 at 12:19 AM Report abuse rate up rate down Reply
silver2364

None of them pertain to me.

April 01 2014 at 2:38 PM Report abuse +1 rate up rate down Reply
cincyburb01

A person who is divorced should not refer to themselves as "single,' but 'divorced.' As someone who has spent his entire life unmarried, I get tired of people on dating sites, etc., who call themselves single, when they have actually gone through marriage. Our English language has advanced far enough to where we have enough words to more-specifically define ourselves, without hiding behind vague or incorrect terms.

April 01 2014 at 2:35 PM Report abuse +1 rate up rate down Reply
1 reply to cincyburb01's comment
pearlnestor1

I know, I'm sick of it too. A single person is one who stands alone with no help and gets stuck paying a lot more in taxes because we are supporting everyone else's kid to go to school and welfare too. Singles get taxed at a higher rate and yet as a group we are not entitled to hardly any government programs if we are down on our luck. It's just tough cookies then. I just made it a point to live as simply as I can and I have made it my mission in life not to pay more taxes. I took a job that reduced my income by 10,000.00 a year. That really helps because otherwise that income would have cost me 12 to 13,000.00. a year. It's horrible to think that the money you earn is only a loan that you will have to pay back to the government. Watch your own back, because being single, no one else will, especially the government, they'll take all you earn and then tell you "it's for the children" like that's supposed to make it better. Of course us true, single, alone people are in the minority and we don't have a huge voting bloc so things are only going to get worse for us instead of better. There were times in my life when I thought of a marriage of convenience, still may do it. I'll have to crunch some number's. Also if you're single and die, you can't leave your social security to anyone though you slaved for it all your life. If I know I'm going to die, I'm going to grab any bum off the street and marry them just so someone can get the benefits I worked all my life for, government is NOT going to get away with taking my money!

April 01 2014 at 11:44 PM Report abuse rate up rate down Reply
INFRWKSNJ

1. Don't pay them. You won't have to worry about them for long. You'll have lots of time on your hands.

April 01 2014 at 12:57 PM Report abuse rate up rate down Reply