There are a few advantages that senior citizens enjoy when it comes to filing tax returns currently. Filing tax returns is not the most enjoyable thing and the older one gets, the tougher it gets. Many seniors live on a fixed budget and saving every dime becomes a vital survival tactic. The standard deduction is making this possible. These advantages come in handy for many senior citizens. The tax code that was passed recently is both considerate and a relief for many who are 65 years and above. This article explores a few things you should know about the standard deduction for seniors.
The first advantage is that there is an enhanced standard deduction for seniors now and seniors can now claim higher standard deductions. There used to be a standard $1600 deduction that seniors used to receive but now this has been doubled under the new tax code.
Filing returns is tedious and many seniors find this quite a hard task. Often times they hire people to do this for them. Now the new standard deduction does not require seniors to file taxes of their income below a certain threshold and many are enjoying this and skipping that step altogether. Click here to learn more.
Something else worth noting is that seniors do not have to itemize their deductions under this standard deduction. This makes it so much easier for them to file their taxes. While there are a few seniors who are still keen on itemizing their tax returns, it is no longer a prerequisite. In case a senior decides to itemize things like medical expenses, these are now deductible. This is a sore spot for many senior because of the high medical bills that are inevitable with age. This standard deduction has successfully allowed the tax filer room to write off their medical expenses. For a senior to fully understand how to itemize as they file their taxes, then they need to know what is not included in the first place. It is important to note that any funds used to cover medical bills from any health savings account cannot be deducted and should be checked with the IRS's deduction eligibility tool. Check this article for more info.
Another advantage that the seniors are enjoying under this tax code is the availability of tax credit. A senior is eligible for the tax credit depending on the filing status. The main requirement for this is that the senior should be 65 years and above. If the senior is fully disabled and not yet 65 years, then the age requirement is no longer considered. Visit https://www.wikihow.com/Calculate-Federal-Income-Tax for other references.
To earn tokens and access the decentralized web, select an option below
(It's easier than you think)