Tax Breaks for Seniors

Summary

The transcript summarizes a financial podcast discussing tax breaks available for seniors over 60, including an extra standard deduction, spousal IRA contributions if one spouse still works, qualified charitable distributions from IRAs, and potential Medicare premium deductions. Additional tips are provided like state tax benefits, capital gains exclusions when downsizing homes, property tax relief programs, and tax credits for the elderly/disabled or retirement savings.

Chapters

Introducing the Podcast and Host

The host Ralph Estep Jr. welcomes listeners to the Ask Ralph financial podcast brought to you by Saggio Management Group. He previews the episode topic on the best tax breaks for seniors.

Overview of Tax Breaks for Seniors

An extra standard deduction, spousal IRA contributions, qualified charitable distributions (QCDs), and Medicare premium deductions are outlined as key tax savings opportunities for seniors over 60 years old.

Extra Standard Deduction Details

Seniors 65+ may qualify for an additional standard deduction amount on top of the regular standard deduction, reducing taxable income for non-itemizers.

Spousal IRA Contribution Eligibility

If one spouse in a couple over 60 is still working, they can make IRA contributions on behalf of the non-working spouse over 60 as well.

Qualified Charitable Distribution Benefits

QCDs allow seniors 70+ to donate IRA assets directly to charity without including distributions as taxable income.

Other Senior Tax Savings Tips

Additional ideas like state tax benefits, capital gains home sale exclusions, property tax relief programs, and tax credits for seniors are suggested for exploration.

Closing Remarks

The host concludes by emphasizing the value of professional tax advice and planning to ensure seniors maximize available breaks legally.

Welcome to the Ask Ralph podcast. We're listening to an experienced financial professional can help you make sense of confusing questions current headlines and industry trends about taxes, small business, financial decision making, investment strategies, and even the art of proper budgeting.

As Ralph makes the complex simple by sharing his real -world knowledge with all things financial. Now here's your host, Ralph Estep Jr. Welcome back to another episode of the Ask Ralph show. I'm your host Ralph Estep Jr.

And today we have an exciting topic to discuss and that is the best tax breaks for seniors. This episode is brought to you by Saggio Management Group, your trusted partner in financial management. So stay tuned for some great information of tax breaks for seniors.

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So let's dive into some concrete ways seniors can take advantage of these tax savings opportunities. Number one, the extra standard deduction. So what am I talking about here? Well, seniors who are 65 or older may qualify for an additional standard deduction amount on top of their regular standard deduction.

This can reduce their taxable income and potentially lower their overall tax liability. Now again, this is if you're not itemizing on your tax return. You know, with a change in tax code a few years back, it really grew the standard deduction.

So even in my practice, you know, we're seeing fewer people that are able to itemize. So you don't want to overlook this extra standard deduction for seniors. Number two, a spousal IRA contribution. If one spouse is still working and over 60 years old, they may be eligible to make contributions to a traditional IRA on behalf of their non -working spouse who is also over 60.

This allows couples to save for retirement while potentially reducing their taxable income. Here's another tip. Number three, qualified charitable distributions or what we call in the trade QCDs. What are we talking about here?

Well, seniors who are at least 70 and a half years old can make direct charitable donations from their individual retirement accounts, that's their IRAs, through QCDs without including those distributions as taxable income.

I've talked about this in a podcast before. If you wanna go back and look at that podcast, you'll see it in our history. And you know, while I'm there, I encourage you, go back and look at some of the podcasts.

I think we're up to a couple of hundred now. Podcasts of just brief pieces of information that you could use to benefit yourself. So moving along here on these tax breaks for seniors, let's go to number four, and that is Medicare premium deductions.

So seniors who are able to itemize, may be able to, deduct Medicare premiums paid during the year as part of their medical expenses if they exceed a certain threshold. Now, I'll be honest with you, in practice, this doesn't always play out because, first of all, you've got to be able to itemize.

And like I said, they've really increased the standard deduction. Secondarily, if your income is higher than there is a threshold before you can deduct any medical expenses. But these are the kind of pieces of information that you need to share with the professional who is handling your taxes.

And I really encourage you to work with somebody professional to handle that. So, other tax -saving ideas. You can take advantage of state specific senior tax benefits or exemptions. You can consider downsizing your home and take an advantage of any applicable capital gains exclusions.

You might explore potential property tax relief programs specifically designed for seniors in your area. New Castle County, here where I'm located in Delaware, has those for seniors. You also want to review eligibility for credit such as the elderly or disabled credit or retirement savings contribution credit.

It's important to note that tax laws and regulations can be complex and individual circumstances may vary. Seeking professional advice from experts like Saggio Management, Group, who specialize in tax planning for seniors, can help you ensure you maximize your available tax breaks while staying compliant with the law.

Remember this, folks. Every dollar saved on taxes is a dollar that can be put towards your retirement or other financial goals. Well, that wraps up today's episode of the Ask Ralph Show. I hope this discussion provided some concrete ways for seniors to save money on their taxes.

As always, if you have any questions or topics you'd like me to cover in the future, please feel free to reach out. Until next time, stay financially savvy. And remember, this podcast is brought to you by Saggio Management Group, providing comprehensive financial management solutions for individuals and businesses alike.

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