This information may be old by the time you read it. They – the government – are always changing the tax code. You know, as we all grow older, it is often a shock to realize how little money we actually have stored away for our golden years. This area of law – Elder Law – is about helping those of us who have aged. This is particularly true now that most people don’t have defined pension plans and typically don’t put enough money into other retirement funds (such as IRAs and 401(k)s). In order to hang onto this money as best as you can, here are the best elder law tax breaks. See Ten Ways to Lower Your Taxes for other suggestions. There are growing concerns that one of the biggest costs to seniors and retirees over the age of 50 in the coming years is going to be healthcare. Perhaps as much as 30 percent of our income will be going to healthcare premiums, prescription drugs and other expenses related to our health. However, for some, many of these expenses are tax deductible. If you are a person that itemizes your tax deductions (meaning you do not take the standard deduction), you may be able to deduct your out-of-pocket medical expenses on your income taxes on a Schedule A. However, this is not to say that you can deduct all of your medical and dental expenses. Suppose that your adjusted gross income for 2008 was $150,000 and that you have receipts for medical and dental expenses totaling $15,000. You would only be able to deduct $3750 from your taxes, which is the amount that your medical and dental expenses exceeds 7.5 percent of your AGI. 7.5 percent of $150,000 = $11,250, and $15,000 – $11,250 = $3750. In addition to contributions to IRA accounts, you can also make contributions to Roth IRA accounts. Although you will pay taxes on the money you contribute to such an account, you will not pay taxes on money that you withdraw from it. This means that any interest that the money gains during its time in the Roth IRA account is tax-free. When people retire, they often have time to reflect and think about just who it was that really helped out during their working life. This often leads retirees and seniors to give back to the community in the form of charitable contributions. These contributions are deductible as an itemized deduction. However, there are limits on these deductions. Cash contributions that are charitable in nature can only be deducted up to an amount equal to 50 percent of your AGI. In addition, if you donate property (other than cash) to a charitable organization, you can generally deduct the fair market value of the property. However, if the property that you want to donate (like a house) has appreciated in value since you first bought it, you will probably have to make some adjustments. Lastly, if you make a contribution of a piece of property that the charitable organization will likely sell off (like a car or a boat), then your deduction is limited by the gross proceeds from the sale of the item. This rule applies if the claimed value of the donation is more than $500. For each criteria met, a married person adds $1,050 (2009 tax year) to their standard deduction, while a single person adds $1,300. Elder Law Attorney Free ConsultationWhen you need help with taxes or elder law, please call Ascent Law for your free consultation (801) 676-5506. We want to help you.
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
Divorce Takes Longer Than Temporary Orders via Michael Anderson https://www.ascentlawfirm.com/elder-tax-law/
0 Comments
Leave a Reply. |
ABOUT USDivorce and Bankruptcy Lawyer in UT. If you need divorce and bankruptcy lawyer, child custody, adoption or family law attorney who does child custody, father’s rights, divorces and bankruptcy – both chapter 7 bankruptcy and chapter 13 bankruptcy law that cares about you, your family, your case, and is aggressive, call 801-676-5506 now for a free consultation. divorce and bankruptcy in Utah can be tough, so you need a smart divorce and bankruptcy lawyer who can help you today. Call 801-676-5506 for the top divorce and bankruptcy attorney in Utah now. Archives
April 2017
Categories |