In the present time, senior citizens are fast becoming the major group in the demography of United States. It is expected that by the year 2030, more than 70 million people will cross the age of 65 in USA. This increase in the number of senior citizens makes it imperative to have special tax laws for the older generation of the country.
And rightly so, once you cross 65, you can enjoy some tax deductions according to the federal income tax laws. This is also true for the working senior citizens. Here, the citizens are eligible for some special deductions. Moreover you are eligible for more deductions as compared to a normal citizen. However, it is important to know that some of these credits and deductions may not be applicable once the citizens attain their official “retirement age” regardless of whether they are working or not.
According to Ed Lloyd & Associates PLLC, a reliable source for all types of tax and accounting needs offering tax planning, auditing, and related services, a “retiree” is defined as an individual who has officially finished their work career. However, a “senior” is an individual who has attained 65 years of age or older in the tax filing year.
Working seniors in America are eligible for deductions in taxes and credits. Deductions help in reducing taxable money amount and credits decreases liability on tax. This is precisely the amount owed by an individual in general.
Health Savings Accounts (HSAs), according to Ed Lloyd & Associates PLLC are a tax-exempt trust that gives benefits to senior citizens against the expenses they incur on health. These are used in high-deductible health plans wherein one can claim deductions on money invested in HSA. The contributions by employer to HSA and the interest are tax-free.
Professional tax planning by experienced experts such as Ed Lloyd & Associates PLLC will help in planning your taxes prudently and benefiting from them too.
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