Skip to main content

Cracking the Senior Tax Savings Code.


      Photo by Kelly Sikkema

         Cracking the senior tax savings code may not be as daunting as you might think.  Keeping up with new tax changes is imperative if you want to save a bundle and get every deduction you are entitled to now that tax time is at hand.  Hopefully some of these tips can get you well on your path to cracking the senior tax savings code this year.

     When you hit the age of 65, the IRS provides you with a reward in the form of a higher standard deduction.  A single 64-year-old taxpayer, for example, can claim a standard deduction of $12,550 on his or her 2021 tax-return.  A single 65-year-old taxpayer, on the other hand, will receive a $14,250 standard reduction in 2021.  The standard deduction will increase to $12,950 and $14,700 respectively in 2022.

     The extra $1,700 increases the likelihood that you will take the standard deduction rather than itemize on your 2021 tax return.  If you do claim the standard deduction, this extra amount will save you more than $400 if you are in a 24% tax bracket.

       Did you know that there is a special tax credit for the low income elderly and disability taxpayers.  In order to qualify you must meet 2 requirements.  The first requirement is you have to be 65 or older, the second is if you are younger than 65, then you had to have retired on total disability, and are receiving taxable disability income.

     Once this has been established, your AGI must be less than $17,500 if you file your tax return as a single, head-of-household, or qualifying widow(er). If you're married and file a joint return, but only one of you is eligible for the credit, your AGI cannot exceed $20,000. If both spouses qualify, married couples filing jointly must have an AGI of less than $25,000. Finally, if you're married, filing a separate return, and lived apart from your spouse for the entire year, your AGI must be less than $12,500.

      The second qualifying requirement takes into account your non-taxable Social Security, pension, annuity, and disability income. The combined income of a single, head-of-household, and qualifying widow(er) taxpayer must be less than $5,000. If only one spouse qualifies for the credit, the same income limit applies to joint filers. The income limit is $7,500 if both spouses on a joint return qualify for the credit. The limit is $3,750 for married people filing a separate return who did not live with their spouse during the year.

     If in fact you do qualify for this tax credit you could take an additional $750 if single, or $1,125 if married off your tax bill.  You will need to file a Schedule R with your taxes for this credit.

     If you become self-employed after leaving your job, you can deduct the premiums you pay for Medicare Part B and Part D, as well as the cost of supplemental Medicare (medigap) policies or the cost of a Medicare Advantage plan. This deduction is available whether you itemize or not, and it is not subject to the 7.5 percent-of-AGI test that is applicable to itemized medical expenses.

    Here is yet another way to save on your taxes at this stage in your life. If you're married and your spouse works, he or she can generally contribute up to $7,000 per year to a traditional or Roth IRA that you own. (We're assuming you're at least 50 years old because you're reading about retiree breaks.) This tax shelter remains available to you as long as your spouse has enough earned income to fund the contribution to your account (as well as any deposits to his or her own).

     This is not an exhaustive list of all the saving you can look forward to.  These are just some of the most overlooked strategies at lowering your taxes.  Cracking the senior tax saving code can be successfully done if you know what to look for and who can help you.  I will list some resources below where you can find more information.


Other Helpful Resources:



  1. You have given essential data for us. about tax returns accountants It is excellent and good for everyone. Keep posting always. I am very thankful to you.


Post a Comment

Popular posts from this blog


                              Photo by Austin Guhl THE FIRST YEAR: MAKING THE MOST OF COLLEGE     2010 Florida State Statues :      1009.26Fee waivers.  "A state university may waive any or all application, tuition, and related fees for persons 60 years of age or older who are residents of this state and who attend classes for credit. No academic credit shall be awarded for attendance in classes for which fees are waived under this subsection. This privilege may be granted only on a space-available basis, if such classes are not filled as of the close of registration. A university may limit or deny the privilege for courses which are in programs for which the Board of Governors has established selective admissions criteria. Persons paying full fees and state employees taking courses on a space-available basis shall have priority over those persons whose fees are waived in all cases where classroom spaces are limited." More information about this statute can be found here


State flags on Amazon "WHEREAS, Certain tuition waivers are prescribed by statute, other tuition and fee waivers are authorized by the Board, and..." 3. Senior Citizen (62 or older -part-time) -A full waiver of the Extension fee (summer and winter sessions) is authorized for any Connecticut resident sixty-two years or older providing that at the end of the regular registration period there is space available in the course(s) in which they intend to enroll, 4. Senior Citizen (62 or older -full-time) -A waiver of the University Fee is authorized for any Connecticut resident sixty-two years or older who is enrolled in a degree-granting program pursuant to the provisions of Section 10a-99 of the CGS," 1. citation :  Excerpt from the Connecticut State University System - RESOLUTION concerning TUITION AND FEE WAIVER AUTHORIZATIONS October 8, 2009.     According to Connecticut state statue senior citizens can take college classes and earn a degree tuition free. 

New York

   I have not successfully found a specific statute or law reguarding senior citizens recieving tuition waivers or discounts.  Many colleges offer discounted tuition, tuition waivers for auditing courses, and various educational opportunities for senior citizens.  Check the list below and click on links that have additional information regarding educational opportunities. City of University of New York Senior Colleges and Graduate Schools Baruch College - Contact Info: 646.312.1000 Discount tuition fee information for senior citizens. Brooklyn College - Contact Info: 718.951.5000 Discount tuition fee information for senior citizens. The City College of New York  - Contact Info: 212.650.7000 Discounted tuition information for senior citizens. College of Staten Island - Contact Info: 718.982.2000 Tuition waiver information for senior citizen