When living on a fixed income, it becomes even more important to find financial savings wherever possible. Many retirees inadvertently overpay on their taxes because of missed deduction opportunities. It’s important to understand how your age and sources of income affect your tax return. At James T. Borello & Co., our consultants are highly experienced in tax preparation for seniors. We are skilled in helping seniors and retirees lower their tax liability.
One sure way to save money on your taxes is to choose the right way to take deductions. You can choose between taking the standard deduction and itemizing your deductions. Taxpayers who are over 65 are entitled to a higher standard deduction. However, if you itemize your deductions, you may be able to deduct a variety of expenses such as health insurance and medical costs, sales and property taxes, state income taxes, contributions and many others. In order to choose the best way to treat deductions on your tax return, you need to consult a qualified tax professional like those at James T. Borello & Co. The Tax Code changes annually, and only a knowledgeable professional can make sure you are not overpaying your taxes.
Many retirees find themselves downsizing their homes and plan to use some of the profit from the sale to fund their retirement. Current law allows up to $500,000 of profit from a home sale to be non taxable. At James T. Borello & Co., we provide sound advice on retirement planning from a tax perspective. Contact our firm and let us help you understand the changing role of taxes for retirees.