As the tax season for 2024 is underway, older adults are discovering various strategies to save tax dollars and maximize their benefits. In New York City, veteran CPA Neil Frankel sheds light on key tips that can significantly reduce tax burdens for individuals aged 65 and above.
One of the primary advantages for seniors is the higher standard deduction available to them. Frankel emphasizes that this deduction can lead to substantial savings for older taxpayers, allowing them to keep more of their income.
Another crucial aspect that many overlook is the Required Minimum Distribution (RMD) requirement for retirement accounts, which kicks in at age 73. Frankel reveals a lesser-known tactic where individuals can directly transfer up to $100,000 of their RMD to a charity. This maneuver not only fulfills the RMD obligation but also provides a substantial tax break by reducing taxable income.
Furthermore, Frankel points out the deductibility of medical insurance premiums paid during the Medicare application process. Seniors can include these premiums as medical expenses, further lowering their taxable income and potentially increasing their tax refunds.
These tax-saving strategies are particularly beneficial for older adults who are mindful of their financial planning and wish to optimize their tax situation. By leveraging these tips, seniors can navigate the tax season with confidence and ensure they are taking full advantage of available deductions and exemptions.
As tax regulations and laws evolve, consulting with a qualified CPA or tax advisor can provide personalized guidance tailored to individual financial circumstances, ultimately leading to enhanced tax savings and financial well-being for seniors.
