Just as laws seems to change frequently, so does the US tax code. Keeping up with changes may seem daunting, but a little investigation may mean the difference between being required to pay and receiving a refund. Keep as much of your money as possible by working with a trusted advisor and talk with him/her about tax savings for those over 65. Its important to work with your financial advisor/planner and estate planning attorney. A strong team with good communication and planning is worth its weight in gold!
- Standard Deduction– $14,700 if your taxes are relatively simple
- Medical Expense Deduction– Allowed to deduct any medical expenses that exceed 7.5% of your adjusted gross income.
- Elderly or Disabled Tax Credit– Over 65 or permanently disabled. Income must not exceed certain levels, allows you to deduct money from the total amount owed to the IRS.
- Estate & Gift Tax Exclusions- Increases in the amount you can pass to your heirs in 2022, now $12 million without penalty. You can do this while you’re alive, this way any interest earned is outside of your estate. You can give $16,000 annually to as many individuals with no federal gift tax. You can make unlimited direct payments for medical and tuition expenses for as many people as you’d like with no gift or estate tax consequences.
