When preparing to file your tax return in south Orlando, the standard deduction s what the government gives tax payers based on heir filing status. When you itemize your deductions it takes a while to list all miscellaneous expenses that you can cut off your tax liability. The standard deduction for people over 65 is a lot more than what other tax payers get. Here are all the tax deductions you can make once you start itemizing your costs.
If you are over the age of 65 you can deduct any medical and dental expenses over 7.5 percent gross income. Otherwise many retired folks find themselves paying at a more expensive rate than they did in their younger years.
It would be wise to check if you are eligible for the IRS elderly and disabled tax credit. It is non refundable, that means that it will cut of some amount from your tax liability. This translates into the fact that if the credit is more than your taxes due then you will not receive a check for the difference, but at the same time you will not have to pay up anything either.
When Selling the House
A lot of people in their old age downsize from the space that they are living in and therefore consider selling their house. If you sell your house it might just be profitable for you. As someone over 65 you are not liable to pay any tax on the profit on the sale that you will make. There are certain imitations to this as well. The break is only legible if you make up to $250,000 of profit.
If you are planning on putting money in a retirement account then know that it can save you money, as you can do that tax free. But do your homework. As many accounts will only let you take distributions when you reach a certain age. This is not exactly a deduction but it is very useful to take income from the accounts on which you are not paying taxes.
Saving in a retirement account can mean a tax break after you have finally retired. Here is the deal, before you reach a certain age you can only contribute a limited amount to your retirement plans. For example, you can contribute to up to $17,500 if you are under 50 and then add $5,000 more after you go over 50. Get in touch with a good tax service for expert advice before you file your tax return in South Orlando.
Donations that you make are one tax deduction that people rarely take advantage of to their full extent. Once you enter retirement. Once you enter retirement feel; free to go about any noble cause and enjoy the lower tax liability.
If you need more information about our South Orlando accounting and tax services, please contact us at 407-502-2400. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, Hunters Creek, Lake Nona, Celebration, Winter Park, Windermere, Dr. Phillips, Maitland, Altamonte Springs, Winter Garden, Ocoee, Apopka, Belle Isle, Edgewood, and Oakland FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin number, incorporations, and non profit 501c3 tax exempt.