The Tax Cuts & Jobs Act (TCJA) signed into law in 2017 had some good news for seniors:

  • The more generous higher standard personal deductions (they doubled!) offer a good path for seniors who do not need to seek itemized deductions because of their simpler income and household situations.
  • How much seniors are spending on health care will be a big driver as to whether or not they seek the standard personal deduction or look for itemized deductions: under the TCJA, you can use this deduction when medical expenses exceed 7.5% of your adjusted gross income (AGI). Depending on your yearly doctor’s and specialist’s bills, this could represent a significant writeoff.

Navigating More Nuanced Tax Pictures for Seniors

Tax brackets and more changed under TCJA; some changes might bear further blessings for those in their Golden Years, but you might want to get some advice for your particular situation: RMDs (required minimum distributions) from IRAs with mandatory kick-in dates, changing tax brackets and more might make it worth your time to seek out your investment advisor, CPA or tax preparer to guide you through the fine print and minimize the amount you’re giving the Feds every tax year.

Senior Taxes and Retirement: The Big Picture

Retirement planning means tax planning: When we’re budgeting for how far a nest egg will stretch in retirement or semi-retirement, getting an accurate read on your changing tax burden is important. In this post, we talk about retirement tax savings less from a tactical side and more from an investor’s mindset: You’ll find a couple other things that should be front of mind if you want to get the most out of your retirement dollars.

Free Senior Tax Help from Uncle Sam

Not everybody has a small financial empire to manage: Sometimes it’s hard to just get through the basic tax-time process itself. Tax time can be confusing for seniors, especially if you’re on a fixed budget. If you or a senior you know has limited resources and feels overwhelmed, you might want to look into the Tax Counseling for the Elderly (TCE) Program. The TCE’s services are available at no cost to people aged 60 and up; you get to talk to an IRS-certified volunteer who can walk you through how to complete the right form and file on time.