Tax season can be daunting, especially for those filing who want to ensure they maximize all the available tax benefits for seniors.
The Kensington Falls Church is here to support you and all senior loved ones. That’s why we’re inviting you to join us on Feb. 5th for our event, “Navigating Taxes and Benefits for Seniors,” which will include expert guidance on navigating the complexities of senior tax benefits.
This event is part of an ongoing monthly series at The Kensington Falls Church, designed to empower seniors and their families with resources on key topics affecting their lives.
Whether you’re preparing your taxes or planning for next year, this free on-site event will provide practical strategies to maximize retirement income, minimize tax burdens, and make the most of available benefits.
Our promise is to love and care for your family as we do our own.
Understanding tax benefits for seniors
As seniors transition into retirement, their tax situation will typically change.
The good news is that certain benefits and exemptions have become available, which can help reduce tax burdens. However, you must be aware of these opportunities and how to claim them.
Learning about these tax benefits for seniors means you can take control of your financial health or your loved ones and avoid missing out on valuable savings.
Key tax benefits seniors should know
- Increased standard deduction: Taxpayers aged 65 or older are eligible for a higher standard deduction—which can reduce taxable income and potentially lower their overall tax liability.
- Medical expense deductions: Medical expenses tend to add up rather quickly, but seniors may be able to deduct certain healthcare costs.
- These expenses can be claimed as itemized deductions if they exceed 7.5% of their adjusted gross income (AGI).
- This includes out-of-pocket prescriptions, doctor visits, long-term care services, and even some assisted living expenses.
- Retirement account contributions: Even in retirement, seniors can benefit from contributing to retirement accounts like IRAs—for those still working or receiving earned income, contributions may be tax-deductible.
- Property tax exemptions: Many states and local governments offer property tax reductions or even exemptions for senior citizens (programs vary by location, but they can significantly reduce some financial burdens for eligible homeowners).
- Tax credits for the elderly or disabled: Seniors aged 65 or older or permanently disabled might qualify for a tax credit based on income.
Real estate tax: Senior exemptions vs. senior freezes
For senior homeowners, understanding the differences between a senior exemption and a senior freeze is very important to maximizing your property tax savings.
What is the senior exemption?
The senior exemption is a deduction applied to a senior’s real estate tax bill, reducing it by a specific amount annually.
The exemption is calculated based on a fixed deduction—for example, $5,000 multiplied by the local tax rate. If the local tax rate is 6%, the senior exemption would provide a $300 reduction.
What is the senior freeze?
The senior freeze locks the taxable value of a senior’s home, ensuring that as the property’s market value rises, the taxes do not increase.
This freeze provides an additional deduction, calculated to offset the difference between the home’s current assessed value and the frozen value.
Seniors benefiting from this program enjoy significantly lower property tax bills.
Key differences
While both programs aim to reduce property taxes, the senior exemption provides a straightforward reduction, whereas the senior freeze protects against future tax increases due to rising property values.
Qualifying for these benefits typically requires meeting specific age, income, or residency criteria, so reviewing local regulations is important.
How to claim senior tax benefits
The tax system can seem complex, especially when claiming deductions and credits.
Here are some steps to help:
- Organize your documents: Gather all necessary tax documents, including 1099s, medical expense receipts, and retirement account statements
- Research state-specific benefits: Property tax exemptions and other programs vary by state, so it’s essential to understand what’s available in your area
- Consult a tax professional: A tax advisor familiar with senior tax benefits can provide tailored advice and help ensure you take full advantage of available opportunities.
- Use tax preparation software: Many programs include features specifically designed to identify deductions and credits for seniors.
Challenges seniors face during tax season
- Understanding eligibility requirements: Many tax benefits have specific eligibility criteria, such as income thresholds or age limits. Misunderstanding these requirements can lead to missed opportunities or errors on tax returns.
- Keeping up with tax law changes: Tax laws are prone to changes, and staying updated can be difficult. Seniors may not realize when new benefits become available or when existing ones are modified.
- Navigating complex forms: The tax forms can be overwhelming, especially for those unfamiliar with the process. Even small mistakes can result in penalties or missed deductions.
Why attend our “Navigating Taxes and Benefits for Seniors” event?
The free online event hosted by The Kensington Falls Church is an excellent opportunity to:
- Learn from experts: Gain insights from tax professionals specializing in senior tax benefits.
- Get actionable advice: Discover practical steps you can take to maximize your deductions and credits.
- Ask questions: Participate in a live Q&A session to address your concerns.
- Plan for the future: Learn how to adapt your financial strategies to take full advantage of tax benefits.
Monthly resources for seniors
The Kensington Falls Church is committed to supporting seniors through various educational events and resources.
From tax planning to wellness seminars, these monthly sessions provide valuable information to help seniors confidently navigate life’s little challenges.
Be sure to check our website regularly for upcoming topics and registration details.
Your financial future is part of your wellness plan
Tax benefits for seniors can provide much-needed financial relief, but understanding and claiming them requires careful planning.
Attending our Feb. 5th event gives you the knowledge and tools to maximize your savings and help ensure your financial well-being.
At The Kensington Falls Church, senior wellness is our business and our passion.
Part of that passion means helping seniors everywhere learn how to get the most out of life through proper financial management during tax season.
Want to learn more about what The Kensington Falls Church has to offer your loved ones for a long, healthy life?