Tips for Maximizing Tax Breaks after the Age of 50
The savings to you could be 1000’s of dollars each year. Part of your team of professionals needs to include a tax professional which could be a Certified Public Accountant, Enrolled Agent, a tax attorney, or even a financial advisor. Did you know that there are tax savings and advantages available starting with age 50? They tell us that with age comes wisdom and these tax breaks aren’t offered to the younger generations. It is important that you know about the options that are available.
Retirement Savings and Tax Burden
An essential part of retirement savings is minimizing tax burden. If you are not dealing with an ethical and trained tax professional, then you might find yourself in a situation where your cash flow is significantly impacted by money flowing to the US Treasury for taxes. There are tax strategies that can be used to increase savings, improve cash flow during retirement, and secure a most lasting legacy for your money.
If you do it right, you can minimize tax burden and maximize the amount of money that is available to you during retirement. Some of the following tax breaks are available after the age of 50 or 65.
Tax Breaks for Aging Adults
Workers who are older than the age of 50 can use deferment or other methods to avoid taxes on more money that is saved for health savings accounts and retirement funds. Additionally, there is a bigger standard deduction available for taxpayers over the age of 65. If you choose not to itemize, then you will benefit from the higher standard deduction. Make sure you talk with an experienced tax professional to see if this solution is right for you.
There is also a higher tax filing threshold for people over the age of 65. Depending on your income, it might not be necessary to file a tax return. Also, look for property tax discounts that are available, as well as IRA deductions that can be used.
Working with the Right Financial Team
The best way to maximize your retirement money is to work with an experienced team of financial professionals. As you can see, there are many tax breaks available, which is why you need to have the right team in place before making big financial decisions.
Here at Greenwald &Gerke Realtors, we offer real estate services for aging adults. Our goal is to help you find the right housing solution and leverage your retirement savings in the best way possible. Call us today to learn more: (844) 782-9674