Tax Filing: Standard Deductions For Seniors
It is now time you start filing your tax returns. And so, you should see to it that you do your tax preparation adequately.
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. Here is the thing: did you know that if you are 65 years old and above you can receive an extra $1,600 deduction? And there is this great news: the US government has sanctioned the Tax Cut and Jobs Act (TCJA), an act that will come with exceptional impacts on people’s lives. And more essential if you are a senior. 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.
First, there is the enhanced standard deduction for seniors. Turning 65 is something that is worth celebrating, now that you stand to claim greater standard deductions. You have every reason to get an extra $1,600 standard deduction.
Still, there is the great move that was taken by the US government recently; the TCJA has doubled it further. It is a great move that has more than a few benefits for every senior. Here is what you should celebrate: if you are a single filer, your new deductions should be $12,000, a rise all the way from $6,500. Of you are married and are filing jointly, you get your deductions increased from $13,000 to $24,000. If you are a qualified widow or a widower, your tax deductions were increased to $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. Remember that these are standard deductions changes and will apply for all. And it is easy, you will not have to itemize your deductions.
And remember that you will not have to file your taxes below a given certain threshold. It is a such a great move by the government; all thanks go to the US government; but they will not have to pay attention to these steps. 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 couple and you are filing as a unit, you could easily notice that you aren’t required to file anything less than $26,600.
What is more, there is social security. Remember that the social security doesn’t account for this. Here, only a fraction of the social security is taxable. What can be striking is that the reporting threshold rises even more if a non-taxable social security is applied to this equation. This threshold increases to $32,000 if you file as a couple.