Get ready for spring filing season with the following tax-saving tips:
1. If you or your spouse are 65 years or older and you have not itemized deductions, you are eligible for a higher standard deduction amount. If you do itemize and have medical or dental expenses for yourself or a qualified relative that is above 7.5% of your adjusted gross income, you may be able to deduct the difference.
2. If you are 65 and over or permanently disabled, you may be able to claim the credit for the elderly or disabled. To claim the credit on your income, it has to be below $17,500 and the nontaxable part of your Social Security, annuities, or disability income less than $5,000. (The exact numbers depend on your income, marital status and qualification.)
3. Adults 65-plus are permitted $1,600 in additional income compared to younger adults (more if married filing jointly) before they are required to file a tax return.
4. If you sold your home after retirement (having lived in it at least two out of the five previous years), profits up to $250,000 for individuals and $500,000 for married couples are tax-free.
5. Obtain free filing help through programs such as Volunteer Income Tax Assistance, Tax Counseling for the Elderly, and AARP Foundation Tax-Aide.