Tax Deductions for single NR Indian Women in the US

Tax Deductions for single NR Indian Women in the US

The tax season has arrived and it’s the perfect time for your finances to boost up. This is the perfect time for claiming your tax deductions and receiving maximum tax refunds. If you are a single NRI woman residing in the US then you have a lot of opportunities to knock your taxes right now.

A win-win with your taxes

As a single NRI woman in the US, you will not have to wait for the arrival of your various financial documents such as both the sets of Form W-2, Form 1099s, and some other financial documents, unlike the couples.  Since there is less paperwork involved and less information to be collected, you can start filing your tax returns immediately and thus; obtain your tax refunds soon. 

For maximizing your tax refunds, there are a few ways by which you can get the best tax refunds this tax season.

Your correct tax filing status

  • One of the most important steps you can take while filing your Federal taxes is to ensure that you are filing your tax returns by using the correct filing status.

  • According to the IRS, there are five major categories under which you can file your tax returns i.e. Single, Married but filing tax returns separately, Married but filing tax returns jointly, head of a household, and a qualifying widower who has a dependent child.

  • Your taxes, tax credits, deductions, standard deductions, etc. would be mainly based on your tax filing status.

  • If you are filing your tax returns with the Single status, then the current Standard Deduction that can be claimed is $12,400.

  • If you are filing your tax returns as the “Head of the Household” status, then you can claim a bigger Standard Deduction of $18,650. However, this can be feasible if you have the status of both Single and also supporting a dependent.

The 401(k) plan and the IRAs

After your filing status, the next thing which you need to consider is the 401(k) plan. This can be an excellent way for you to obtain some tax benefits. 

  • In case contributions are being made to your 401(k) plan, and then it is one of the best things which you have done. By this, the contributions which you are making are pre-tax that would help in lowering your taxable income. Moreover, by these contributions to the 401(k) plan your investments would easily become tax-free.

  • Furthermore, you can also make contributions into your 2019 IRA up to an amount of $6,000 and $7,000 if you are 50 years or more. By this, you would get a good tax deduction on your taxes for 2020.

Family and Dependent credits

  • If you are a single parent and you are meeting the income limits then the EITC (Earned Income Tax credit) would be a great benefit.

  • This credit can help in lowering the taxes which you owe for payment and you can also qualify for obtaining a refund.  In case, you are a single mother having 3 kids or more than 3 kids then you can obtain a credit of up to $6,660.

  • In general, the biggest expense associated with children is the daycare expenses. Those expenses can be easily offset by using the Child and Dependent Care Credit.

  • The Child and Dependent Care Credit can vary up to 35% of your expenses up to $3000 for one child i.e. $1050 and 35% of your expenses up to $6000 i.e. $2100 for two children.

  • In case, you are having a qualifying child who is below the age of 17 years then you would be able to claim Child Tax Credit i.e. $2000.

  • By the deductions, you are lowering the taxable income you have whereas with tax credits you are decreasing the taxes you owe.


So, if you are a Single NRI woman in the US then these tax deductions and credits can help reduce your taxes and increase your refunds.