When it is time to file yearly income taxes, seniors need to be aware of all deductions. Tax deductions are one way for seniors to get more tax money in their returns each year. By knowing what tax deductions they are eligible for, seniors can take advantage of the deduction and reduce the amount they need to pay each year. The list below includes some overlooked deductions.

1. There are many deductions related to medical care. Expenses for medical transportation, including tolls mileage and parking can be deducted. Medical aids such as crutches and orthopedic shoes are also deductible as long as they are prescribed. Hearing aids, contact lenses and eye glasses are eligible for a deduction.

2. If you are a senior who is still working, any costs that are associated with education to improve your skills at your job may be tax deductible. Subscriptions to journals and newspapers related to the job are deductible.

3. There are also deductions for union dues, expenses pertaining to job-seeking services and cell phone bills that are required for a business. Self-employed individuals can deduct half of the self-employment taxes paid throughout the year. Self-employed premiums for health insurance are deductible.

4. There are some deductions for contributions to charities. There are also deductions for any mileage costs while travelling to a charitable activity.

Source: eldercareabcblog.com

Image: sxc.hu

The cost of medical care is expensive for anyone who does not have adequate insurance coverage, but for the elderly who are living on limited incomes, the financial repercussions of healthcare can be devastating. Seniors can reduce their costs, however, by taking control over their care and trying out some of these tips:

1. Do some research into your health – researching health issues could help seniors reduce the time spent at the doctor’s offices. However, internet resources and books used for self-diagnosis should not replace a doctor’s care; they can however help seniors stay on the right track with diagnostics and care and keep costs lower

2. Avoid the emergency room – charges are higher at hospital emergency rooms. If you experience something that requires medical attention that isn’t an emergency, ask for an immediate doctor’s appointment or go to a walk-in clinic

3. Look for free or low-cost medical care options – during featured health months (like Breast Cancer Awareness month) or seasons where there’s an increase of certain health issues; look for free or low-cost clinics. Breast cancer screenings, flu shots, and even basic diagnostic tests like blood pressure and more are offered in different communities

4. Ask for second and even third opinions – just because one doctor mentions that surgery, or a specific, expensive medication is a requirement doesn’t mean that any senior needs to take it to heart. Ask for additional opinions if you’re uncertain

5. Never be afraid to ask – when it comes to medications, procedures and any element of medical care, ask how much it costs, ask if prices are negotiable, and don’t hesitate to shop around

Via: aipm.net

Image: sxc.hu

Q – My mom’s been thinking about selling her home, which she has maintained even though she is currently living with a relative. After doing some research online, I realized there are some significant tax implications of selling a home, especially when it is mortgage free. Is there a better option to allow her to minimize the tax costs and maximize her assets?

A – The best bet is to have an estate planner review your mother’s specific circumstance and those assets that can be found in her property. However, there are a few options available such as reverse mortgages, trusts, and transfer of assets. Otherwise, at the time of her death, the property will be transferred to the named recipient as outlined on her will. An inheritance and/or estate tax will apply, which can be substantially less than the taxes your mother could pay if selling her home. At that stage, the person responsible for the estate under the will can sell the property to pay for funeral costs, can distribute profits to named family members, rent the home, or live in it themselves. Talk to an estate planner before making any definite decisions about how to handle your mother’s estate!

Sources:

1. ThinkGlink.com

2. Wikipedia

Call Home Instead Senior Care when seeking elder care in Denver. Call us at 303-745-4700.