Tax Filing: All That You Need To Know About Standard Deductions For Seniors
Tax filing is waiting for you again. Adequate tax preparation is what would be your main focus now.
To start with, you would want to see to it that you pay attention to the tax benefits you can take advantage of as a senior. Well, if you are aged 65 or even more, you stand to receive an extra $1,600 deduction. And that is not all; the US government has taken huge moves lately to pass the Tax Cut and Jobs Act (TCJA), and this has a remarkable impact in every US citizen. It has the tremendously positive impact on most seniors, that is to be precise. If you do not have an idea about what every tax deductions that are available for seniors, and much more, you shouldn’t worry anymore; here is everything that you should know when preparing your tax if you are a senior. You deserve to thrive in today’s tough economy.
Consider the enhanced standard deduction for seniors. If there is anything that should be greatly converting when it comes to turning 65 is that you have a right to claim larger standard deductions. You can get an additional $1,600 standard deduction.
What is more, the TCJA went ahead to double this for every filer, as long as they are senior. If you are a senior, you know that you are forever thankful. Here is your new status: your deductions should rise to $12,000 from $6,500 if you are a single filer. If you are married and are filing as a couple, your new deductions are $24,000 from $13,000. If you are a registered and qualified widow or a widower, your new tax deductions stand at $24,000 from $12,700. If you are in charge of a household, you benefit from increment of tax deductions from $18,000 from $9,550. Be reminded that these are standard changes and have been effected for all the seniors. And you will not have to itemize your tax deductions.
And remember that you will not have to file your taxes below a given certain threshold. These new standards are awesome, thanks to the new regulations – most elderly US citizens will have to skip this step. If you are a single filer, and you look to filing your taxes of less than $13,600, you need to know that with the new standards, you aren’t needed to document these any longer. If you are a married couple, this threshold moves to $26,600.
And then there is the social security. Remember that the threshold indicated above do not account for social security benefits. You see, a small portion of social security benefits are taxable. And the reporting threshold escalates, even more, when non-taxable social security is added to this equation. If you are reporting your social security tax, you could be looking at offering at least $32,000, that is if you file as a couple.