One sad truth is that senior citizens of the modern day find their lives hard in retirement age than they figured it would be. They find retirement years to be horrible reason being it’s very hard to live on the income they receive. It gets to the point that they are looking for ways to live their sunset days with some dignity.
If you are a senior citizen and in a similar situation, you can make use of some tax relief plan that could make your situation a bit better. The next time the tax season comes around, before you file your returns look at the tax benefits available for senior citizens and make use of them. When you have finally turned sixty-five you can enjoy an additional standard deduction of about one thousand six hundred dollars. Changes that have been effected in the standard deduction come with major benefits and what’s more the people enjoying the provisions of the bill don’t have to itemize the tax deductions.
For people whose income does not meet a certain threshold you may not have to file your tax returns. It is however impotent to note that the threshold will cover the income alone, if you have social security benefits it’s not accounted for. With the social security benefits, only a portion is accounted for and not the whole thing. Beware that you have to report even more even you add a non-taxable social security benefit on top of your income. Personal exemptions have a brought a change in the need to report that you have to have in mind.
While in the past, both personal exemptions and standard deductions were used in determining the threshold that would require senior citizens to report today only the standard deduction is looked at. State and local tax is poplar tax deduction that a senior citizen can look into and benefit from . This particular tax deduction allows one to write off items like property taxes and state income tax. One a problem that many senior citizens have in their sunset years is not having the best health, medical bills will start to come in.
There is a medical expenses deduction that steps in for senior citizens that have high medical bills. Senior citizens that have itemized tax returns can enjoy the medical expenses deduction if it is more than 7.5% of the adjusted gross income. The key to properly make use of this deduction is to know what will qualify as a medical bill and what will not as much as its related to health care. The good thing about this deduction is that dental and vision expenses are covered which happens to be some very common problems with old age. This deduction will cover other utilities when you are seeking healthcare and it is advisable to be familiar with all of them.