by 卡塔尔世界杯常规比赛时间 research
taxpayers aged 65 or older may qualify for special tax deductions. here are 10 that tax professionals can distribute to clients and potential clients.
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obviously some apply to pre-senior citizens, but older folks might appreciate a reminder.
- higher standard deduction for seniors: taxpayers aged 65 or older receive an additional standard deduction, which reduces taxable income without needing to itemize.
- medical and dental expense deduction: seniors can deduct unreimbursed medical expenses that exceed 7.5 percent of their adjusted gross income, covering premiums, prescriptions and other medical costs.
- credit for the elderly or disabled: tax credits are available to some low- and moderate-income taxpayers aged 65 or older. eligibility depends on income and the amount of social security benefits received.
- charitable contributions: donations to qualifying charitable organizations are deductible for those who itemize. qualified charitable distributions (qcds) from iras can also satisfy required minimum distributions without increasing taxable income. make sure seniors understand their required distributions and what kinds of charities qualify for deductions.
- qualified medical mileage deduction: seniors (and others) can deduct the cost per mile driven to and from medical appointments if itemizing. advise seniors on the best way to track and record mileage. (they need to know this at the beginning of the year, not later when the mileage starts adding up. can they keep track on a computer? maybe if you show them how.)
- health savings account (hsa) contributions: while seniors can’t contribute to an hsa once they are on medicare, unused hsa funds can be used for qualified medical expenses tax-free.
- ira contributions: if still working, individuals over 65 may be eligible to contribute to a traditional or roth ira, with possible deductions for traditional ira contributions.
- investment and dividend income exclusions: some income from municipal bonds is tax-free, and qualified dividends and long-term capital gains are subject to lower tax rates.
- retirement savings contribution credit (saver’s credit): seniors contributing to retirement accounts may qualify for a credit of up to 50 percent of contributions, depending on income and filing status.
- mortgage interest deduction: if a taxpayer is itemizing, interest paid on a primary home mortgage is generally deductible, reducing taxable income.
tax professionals can use this list as a reason to contact senior clients. probe to see what they qualify for, and let them know what documentation they will need to provide.