Sun City Tax Preparation And Planning Tips For Seniors
The popularity of the area with retirees is attributed to its lower cost of living and the milder climate of the region. However, it is also popular with Dallas and Houston residents who want to spend their retirement years living in the renowned Texas Hill Country.
Important Deductions To Consider
If you are a retired senior or considering retirement, your tax preparation and planning needs are unique and very different from those of individuals in other age groups. So it is important that you understand the different types of deductions that are available to you and take advantage of them when you file your federal tax return. The following are deductions that are extremely important for seniors and can reduce your tax liability each year that you are filing a return:
- Business expenses (if applicable)
- Charitable contributions
- Dental and medical expenses
- Investment expenses
- Retirement plan contributions
- Sale of your home
- Standard deductions
As of this year (2014), if you are blind or age 65 and older, you are entitled to an additional deduction of $1,200 or $1,550 depending on whether you are married or single. However, if you file a joint return and your spouse is over 65 years of age, you are entitled to the higher deduction. As more and more Baby Boomers approach retirement, we are seeing the senior market continuing to expand year after year.
Seniors Face Unique Tax Challenges
Wheeler Tax Solutions understands the differences involved with a senior’s financial situation and the unique tax challenges that they face. For instance, many seniors are under the impression that their tax liabilities would decrease and that they would be in a lower tax bracket once they retired. They are also concerned about other issues such as being able to afford their homes once they have retired and if they will outlive their incomes or vice versa.
Additionally, there are a number of challenges that they face when preparing their tax returns, hence the importance of partnering with a professional tax preparer and planner or advisor. If you are approaching retirement, we encourage you to consult with one of our tax specialists today in order to learn more about this.