What Tax Exemptions Are There for Senior Citizens?

What Tax Exemptions Are There for Senior Citizens?

Senior citizens can take advantage of tax exemptions and deductions available through the Internal Revenue Service that include deducting a portion of medical and dental expenses and exemption from paying taxes on profits from the sale of a home. Retirement plan contributions may also be deductible for senior citizens.

As of 2015, senior citizens may be eligible to deduct investment expenses that exceed 2 percent of overall income from their taxes, such as accounting and attorney fees, safe deposit box fees, payments to financial planners, brokers and trustees and online service providers and subscriptions to investment newsletters.

Senior citizens who own businesses or start new ones may deduct expenses incurred through the business such as payments for equipment, travel and home offices. Charitable contributions during retirement can be itemized deductions on yearly taxes too. Personal items, property and fair market value of property donated may also offer tax deductions for senior citizens.

Senior citizens can also take the standard deduction when filing taxes. Individuals older than 65 by December 31 qualify for higher standard deductions than individuals younger than 65. When filing a joint return, only one individual needs to be 65 years of age to qualify for higher standard deductions.

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