Why the Tax Code Is Broken for Singles: Unpacking the Systemic Disadvantages

When filing taxes, single people often face a harsher reality. "The Tax Code Is Broken for Singles" isn't just a headline. It's a systemic issue with real financial consequences. From smaller tax deductions to limited tax benefits, the current U.S. tax code places single filers at a distinct disadvantage compared to married filing jointly. But why is that? Let’s break it down.

What Does It Mean for the Tax Code to Be “Broken” for Singles?

The U.S. tax code can create disadvantages for unmarried taxpayers beyond simply paying more in income tax. The rules have often not kept pace with modern household structures. Single filers often face limited access to certain tax credits, reduced eligibility due to phaseout thresholds, and higher relative liability compared to joint filers.

Unlike married couples filing jointly, single filers cannot combine or split income, which means they may move into a higher tax bracket more quickly. They also miss out on some deductions and income thresholds that are structured for dual-income households. The concern isn’t about avoiding taxes but ensuring the system treats all taxpayers consistently.

Side-by-Side Comparison: Single vs. Married Filing Jointly

Sources:

• U.S. Congress, One Big Beautiful Bill Act, H.R. 1, 119th Cong.
• IRS, Internal Revenue Bulletin: 2024-40
• IRS, Publication 970: Tax Benefits for Education
• IRS, 2025 Amounts Relating to Retirement Plans and IRAs
• IRS, Estate Tax

Even when single filers earn the same income as married couples, they often owe more in federal tax returns. That’s a systemic issue, not a personal choice.

5 Reasons the Tax Code Penalizes Single Filers

1. Bracket Compression

Single taxpayers move into higher tax brackets more quickly. For example, a single person earning $100,000 pays a higher income tax rate than a married couple with a combined income of $100,000 filed jointly. Imagine two software engineers—one single, one married—earning the same salary. The single filer ends up with a noticeably larger tax bill.

2. Deductions Disparity

Marriage doesn’t automatically double itemized deductions. Unlike the standard deduction — which is roughly twice as large for married filing jointly compared to single — itemized deductions are based only on the actual expenses you (and your spouse) paid.

Married couples often gain an edge because they can combine deductible expenses on one return. For example, one spouse’s mortgage interest plus the other spouse’s medical bills and charitable gifts might push them above the joint standard deduction. A single filer can only rely on their own expenses, which makes it harder to surpass their standard deduction unless they have unusually high costs in a few categories.

👉 In short: the benefit comes from pooling two people’s expenses and timing them strategically, not from any rule that automatically doubles itemized deductions for married couples.

3. Credit Phaseout Bias

Many tax credits, such as the Earned Income Tax Credit, Child Tax Credit, or American Opportunity Tax Credit, phase out at lower income levels for single filers. Income limitations don’t adjust proportionately to the real cost of living alone. For example, a single teacher earning $50,000 might be phased out of a credit that a married couple earning $90,000 can still claim.

While not restricted by law, these credits feel limited for single people because:

• Lower phaseout thresholds apply: AOTC and LLC start phasing out at $80,000 for singles versus $160,000 for married filing jointly. The credits completely phase out at $90,000 (single) or $180,000 (MFJ)(Source: IRS, Publication 970: Tax Benefits for Education)
• Credits apply per student, but income tests apply to the taxpayer. A single parent supporting two students could phase out entirely, while a married couple may still qualify.
• No adjustment is made for household size: Singles supporting dependents don’t receive higher income limits.
• Single filers face stricter income thresholds overall: With only one income limit to work with, singles lose access to credits at lower earnings levels than married couples.

These structural limitations create inequities in access, especially for unmarried people supporting others or pursuing education themselves.

4. No Income Splitting

Unlike married couples with a joint return, single people can’t average their taxable income with a partner. That income-splitting advantage can push married couples into a lower tax bracket, reducing their overall tax liability. For instance, if one spouse earns $30,000 and the other $70,000, filing jointly brings their effective income tax rate down—a tool people with single filing status don’t have.

5. Retirement & Estate Inequities

Roth IRA and Traditional IRA income limits kick in earlier for single filing status taxpayers, reducing their access to tax-advantaged savings. Estate planning rules heavily favor married couples, doubling gift tax exemptions and shielding more from federal estate taxes. A single woman who has built substantial savings may end up paying more in estate taxes than a married woman with the same assets.

Roth IRA MAGI phaseout (2025):

• Single/HoH: $150,000–$165,000
• MFJ: $236,000–$246,000.

Traditional IRA deduction phaseout (covered by workplace plan):

• Single: $79,000–$89,000
• MFJ: $126,000–$146,000
• If you are not covered but your spouse is covered: $236,000–$246,000.

📚 Source: IRS, 2025 Amounts Relating to Retirement Plans and IRAs

Real-Life Scenarios That Show How Singles Are Shortchanged

Scenario 1: Single, No Kids

• Tax status: Single
• Income: $55,000
• Filing taxes with few deductions
• Ineligible for some tax credits.

Learn More: Single With No Dependents

Scenario 2: High-Earning Single Professional

• Income: $120,000
• Exceeds phaseouts for education credits, student loan interest, and IRA contributions
• Faces a higher tax rate than married filers with the same household income.

Scenario 3: Single Caregiver (Not HOH)

• Supports a dependent parent or sibling
• Doesn't qualify as Head of Household because they provide less than half of the financial support for the household
• Misses out on filing status relief and certain credits.

Related Read: Can Singles File as Head of Household?

Filing Bias: A Brief History of Why the Tax Code Favors Couples

The Revenue Act of 1948 established the joint return system, which allowed all married couples to file a combined federal tax return with distinct rate schedules. This law effectively introduced income-splitting and was designed during an era when households commonly had a single male breadwinner and a stay-at-home spouse. That tax structure favored married couples, reinforcing traditional roles.

Over the years, tax policy has layered on top of this foundation without adapting to the growing number of unmarried, divorced, or legally separated individuals. The result: unmarried taxpayers became the default "other."

Infographic: How Much More Do Singles Pay?

A single filer earning $100,000-$200,000 pays approximately $6,830 more annually in taxes than a married couple with a similar combined income in the tax year 2022.

Data sourced from IRS SOI for 2022 Tax Year.

What the Experts Say

Leading policy analysts across the board—from the Tax Policy Center, Brookings Institution, and Center on Budget and Policy Priorities—agree that the U.S. tax system structurally favors married couples.

As Associate Professor of Law Lily Kahng notes, "...there is never a single person’s bonus – that is, a single person never pays less relative to a couple, whether married or unmarried, with the same amount of income as the single person" (source). Now retired, Professor Kahng is acknowledged as an authority in tax law.

As the Brookings Institution highlights, many critical tax credits, including the Earned Income Credit, offer minimal relief for childless workers, sidelining single adults who receive fewer than 4% of EITC benefits despite significant need (source).

Despite bipartisan recognition of these inequities, meaningful reform has lagged. As the Center on Budget and Policy Priorities notes, "Single childless adults, in contrast, begin owing income tax when their earnings are still below the poverty line, and they receive little or no EITC" (source).

Reform Ideas That Could Help Fix the System

• Individual-based taxation: Used in Canada and the UK, where each person is taxed separately on their own income. Unlike the U.S., marriage does not change income tax brackets or rates, though some credits and benefits are adjusted based on marital or family status.
• Make education credits fully refundable, and ensure eligibility does not depend on filing status.
• Clarify and modernize Head of Household eligibility to reflect diverse caregiving roles, such as cohabiting adult dependents, non-parent relatives, or shared support arrangements.
• Adjust tax brackets and deductions to account for fairness across different household sizes, ensuring single filers don’t face a disproportionate burden.

Related Articles:

• Why Do Single People Pay More Taxes?
• Real Cost of Being Single

Final Thoughts: What Singles Can Do Right Now

You can't change the tax code overnight, but you can take steps to reduce your tax liability and maximize your tax return:

• Adjust your W-4 to avoid over-withholding
• Claim education credits, capital loss deductions, or certain tax deductions that are often overlooked
• Explore eligibility for the Head of Household filing status
• During tax season, review your return with an eye for less paperwork and better strategies
• Advocate for change: Support policymakers focused on equitable reform

Ready to file smarter?