How To Make The Most Of Your Tax Deductions As A Senior

Many people mistakenly believe that becoming elderly has no advantages beyond gaining wisdom. However, this is not the case, at least when paying less in taxes. This blog aims to help seniors claim all of the tax deductions and credits to which they are entitled.

For their tax returns, senior citizens can qualify for several deductions. The following are some examples:

1. Standard Deductions

Taxpayers who turn 65 by the end of the taxable year are eligible for a larger standard deduction. Those who are 65 or older and have a spouse who is also 65 or older and meets the requirements for filing a combined return are eligible for the larger deduction.

Individuals can use the standard deduction or itemize their deductions on IRS Form Schedule A. Suppose a senior's personal deductions, which include real estate taxes, charitable donations, house mortgage interest, and medical costs, don't exceed the appropriate standard deduction, the senior should accept the standard deduction.

2. Medical Expenses

Medical expenses are an essential deduction for seniors to remember if they want to itemize their deductions on their income taxes rather than taking the standard deduction. Medical expenses must exceed 7.5% of their adjusted gross income to qualify for a deduction. Due to greater medical expenses associated with aging, these deductions can have a significant financial impact.

3. Charitable Contributions

In most cases, a senior citizen can deduct the total market value of non-cash donations made to an approved charity. However, if the property's value has increased, it will need modifications.

Since charity donations are only tax deductible if itemized, it makes sense for seniors to consolidate their giving into a single year. They could, for instance, donate a lot to charity one year, then nothing the next or the year after that.

In most cases, the total amount a senior can deduct from their taxes is the amount the charity makes from selling the boat, vehicle, or aircraft they donated. If the stated worth of the given car is higher than $500, then seniors follow this guideline.

4. Property Tax

For seniors who choose to remain in their homes, tax relief may be available in the form of property tax exemptions and school tax credits. They should try to determine from their tax preparer whether their senior citizen status entitles them to any property tax breaks since these regulations differ by state and municipality.

5. Elderly Or Disability Credit

This credit is intended for those 65 and above, those who have retired due to a permanent handicap, and whose income is less than $17,500 for an individual or $25,000 for a couple. This credit might net their savings of $3,750 to $7,500 or an income of the same amount.

Senior Helpers West Los Angeles

Seniors can save a lot of money if they make use of the tax breaks and other resources available to them. That's always a good thing to remember. If you require care for an elderly loved one or are trying to make a career change in the senior care field, get started on your path now by contacting Senior Helpers of West Los Angeles.