27 Feb Four Tax Breaks for People Over 50
Paying taxes is not the most enjoyable thing you’ll do, but it is good to know the process is kinder to you the older you get. Once you hit fifty, major tax breaks start coming your way. Make sure you keep these four tax break tips for people over 50 handy when you’re filing this year.
1. Charitable Contributions
Seniors tend to take advantage of retirement by participating in the act of giving. Not only does sharing prosperity with your community good for the soul, but it’s also handy during tax time. Most charity contributions are tax deductible.
2. Medical and Dental Expenses
As we age, we tend to visit our doctors more often. These visits sometimes end in costly procedures, monthly medication and other expenses. Luckily, many of these expenses can be deducted when filing taxes. Itemizing your deductions for medical expenses does come with a limit, so keep that in mind when consulting with your tax accountant.
Investing your money can not only help you earn a little extra income, but also offer you some breaks at the beginning of the year. Investments are usually taxed between 5 and 15 percent. However, investments are not taxed by Social Security or Medicare.
4. Selling Your Home
Many seniors downsize their living spaces after retirement. Selling your home allows you to earn a profit and a tax break at the same time. If you live in your home for two of the five years before you sell your home, the profit you make on the sale is not taxable.