Before you begin to file your tax returns, it is advisable to consider knowing the tax benefits that are available to the senior citizens. You should know that those individuals that are more than 65 years receive an additional deduction of 1600 dollars. Moreover, the U.S government recently passed the Tax Cut and Jobs Act. This has a significant impact on senior citizens. Consider to learn the discussion below regarding the standard deduction for seniors and explore the popular deductions as well as the tax benefits that are designed to help seniors to thrive in the current economy.
Attaining the age of 65 is an advantage because you can claim a larger standard deduction. All the tax fillers that have the age of 65 and above usually receive an extra 1600 dollars standard deduction. In addition to the standard deduction for the seniors, the Tax Cuts and Jobs Act also multiplied it twice for all other filers. This is highly advantageous to the seniors.
For seniors to file taxes, some requirements ought to be considered. For example, there is a certain threshold, whereby if the income of a senior is below it, you will have to pay taxes. For those seniors that are single filers and are aged 65 and above, they need not file returns if their income is below 13, 600 dollars. For the married couples, the threshold tends to increase up to 26, 600 dollars.
The social security is also included. However, only a portion of social security benefits is taxable. When non-taxable social security is added to the equation, the reporting threshold tends to increase. For example, for couples who are married, the reporting threshold tends to be high as 32, 000 dollars. Click here for more information.
One of the critical change for the reporting needs involves personal exemptions. During the traditional days, both the standard deduction and any personal exemptions claimed were included in the reporting threshold. Nonetheless, the Tax Cut and Jobs Act eliminated personal exemptions. Therefore, it is only the standard deduction for the seniors that are pertinent. Even after the personal exemptions were removed, the new standards for the seniors are still more beneficial. For more, click here.
Finally, you ought to know that for those seniors that have high medical bills, medical expenses deductions is usually popular. If you choose to itemize, the medical expenses may be deductible. Such deduction permits the tax filers to write off all the medical costs that are more than 7.5% of the adjusted gross income. Visit https://www.wikihow.com/Reduce-Taxes-in-Retirement for other references.