4 Tax Filing Tips For Seniors

April 23, 2021

Individuals over age 65 enjoy numerous tax breaks as of 2021. If you are a member of the senior population and will file your taxes soon, review these tips from your accountant service in Los Angeles. All help you make the most of your taxes and subsequently pay less. 

Use the Elderly Or Disabled Credit

File with Form 1040 or Form 1040A, not Form 1040EZ, if you are eligible for the Credit for the Elderly or Disabled. For the credit to apply, you and or your spouse must be 65 or older. The credit also applies if you are under age 65 but completely and permanently disabled. In terms of your income, it must be less than $17,500 or less than $20,000 if you’re filing jointly. Additionally, the non-taxable portion of your Social Security income must be less than $5,000. 

Choose the Standard Deduction For Seniors and Spouses

If you are 65 or older, and or your spouse is 65 or older, you can opt for a higher standard deduction when you meet additional criteria. File the standard deduction if you accept Social Security payments, did not run a business during the tax year, and took no or few payments from pensions, IRAs, and other retirement accounts. For 2021, the deduction is $12,400 if you are single or married but filing separately, $24,800 if you are married and filing jointly or are a qualifying widow(er), and $18,650 if you are the head of your household.The standard deduction is even higher if you or your spouse is blind. 

Double-Check Your Social Security Benefits Worksheet

You must pay Social Security income taxes if your provisional earnings are over $32,000. Determining the taxable amount of Social Security can be challenging, so ask for an extra worksheet to double-check your numbers. You can also have your taxes professionally prepared by your Los Angeles accounting service to save time and hassle. 

Deduct Medical Expenses

Medical expenses over 10% of your adjusted gross income were deductible in 2020 and again this year. They include surgeries, preventative care, dental and eye care services, qualified long-term care, assorted treatments and procedures, and psychiatrists and psychologist services. The cost of medical care-related travel is deductible as well. However, you cannot deduct expenses you were reimbursed for, cosmetic procedures, and over-the-counter medication. 

Learn more about accountant services in Los Angeles by contacting Wallace and Associates today.