Seniors often face difficult financial circumstances. Even if you’ve saved money, you’re on a fixed income. However, various tax deductions for seniors can provide financial relief. This post will explore lesser-known deductions for seniors in Georgia.
Cutting Your Tax Liability: Lesser-Known Tax Deductions for Seniors in Georgia
Medical and Long-Term Care Expenses
Medical deductions can be some of the most useful. Beyond the standard deductions, seniors can leverage medical expenses to maximize their benefits. Any amount exceeding 7.5% of your Adjusted Gross Income (AGI) becomes deductible. Keep detailed records of medical bills, prescriptions, and co-pays for qualified expenses. It may include doctor visits, medication, and medical equipment.
Long-term care premiums may also be eligible for deductions. Premiums paid for qualified long-term care insurance plans are partially deductible. However, there are limitations based on age and income. This deduction offers relief from the rising costs of assisted living or nursing home care.
Retirement Income and Tax Breaks
Georgia offers a generous exclusion on retirement income. Seniors aged 65 and older can exclude up to $65,000 per person. Between ages 62 and 64 can exclude up to $35,000. This exclusion significantly reduces taxable income, especially for retirees relying on pensions or annuities.
Georgia stands out by not taxing Social Security benefits. It can significantly increase the funds seniors have available.
Tax Breaks for Property and Homeownership
In Georgia, seniors can use the homestead exemption to reduce the assessed value of their primary residence. By reducing the assessed value, you can reduce your overall property tax liability. Additional exemptions are available based on age and income.
Seniors might also be eligible for deductions associated with home modifications. Various modifications associated with mobility issues may offer tax deductions. This deduction makes these vital home modifications more accessible. It can also help seniors who want to age in place.
Other Potential Deductions
Seniors may be eligible for deductions associated with senior care. Fees and dues paid to senior centers for activities, meals, or transportation may be deductible based on the services offered.
Many seniors choose to spend their free time volunteering with various organizations. Seniors volunteering for qualified organizations can potentially deduct driving mileage and other out-of-pocket expenses incurred during volunteer activities.
Seniors in Georgia aged 65 and older or legally blind can get a boost to the standard deduction. This enhancement significantly contributes to reducing their taxable income.
Seniors aged 62 and older in Georgia may qualify for a discount on solid waste services in their county.
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