Tax Credit and Filing Tips for Seniors

Filing taxes can feel like a big task, and we know it can be even more daunting for seniors. As we get older, our financial situation may change and tax requirements may also change which might bring up some new challenges. But don’t worry, we’re here to help!  We’ve put together some information and resources to guide you through your tax requirements and ensure you’re getting all the tax savings you’re entitled to. 

Please keep in mind that although we offer assistance, The Ridge does not provide tax advisory services. For personalized advice, we recommend consulting with a certified tax or financial advisor.

Common questions about tax filing requirements for seniors

As a senior, staying up to date about your requirements is important – not just for tax compliance, but also to maximize your benefits. We have the answers to common questions you may have below.

• Do seniors need to file taxes?
• Do seniors on social security need to file taxes?
• What should you do if you can’t pay your taxes?
• Are there senior-specific tax credits or deductions I can benefit from? 
• Are there resources that can help me with my taxes? 

Let’s begin!

Do seniors need to file taxes?

Generally speaking, seniors are required to file taxes, however there are some minimum income requirements that can exempt some. Your minimum income will change depending on a few factors:

• Your age
• Your marital status
• If you are a widow/widower
• If you are the head of your household

It’s important to note that this minimum can change from year to year. For example, in 2024, if you’re filing for the 2023 tax year as a single senior that isn’t the head of your household, your minimum would be $15,700, but for the 2022 tax year your minimum would have been $16,480. 

Keep in mind, almost all types of taxable income count towards your minimum, including pensions, traditional IRA withdrawals, and investment interest or capital gains.

Do seniors on social security need to file taxes?

If you’re on social security, you may need to file taxes if the sum of your total income, including social security benefits, is more than your minimum income requirement. 

If you’re wondering whether or not you need to pay taxes on your social security, this depends on a different minimum set by the IRS that uses your “combined income”. To find out your combined income, you can use this formula:

Gross Income – Adjustments + Nontaxable Interest + (½ * Your Social Security Income)

Note: You won’t ever have to pay taxes on 100% of your social security income. The maximum taxable portion is 85%.

What should you do if you can’t pay your taxes?

If you can’t pay your taxes, the IRS offers several options – but make sure you review the tax-saving opportunities below first before you explore these alternatives.

Senior-specific tax credits, deductions, and more

There are many opportunities for you to save on your taxes during your golden years, so understanding these are essential to maximizing your tax savings.

Higher standard deduction

Every taxpayer qualifies for a standard deduction, and seniors over 65 get an additional amount added onto their standard deduction. Before you settle on using this deduction, you should review your potential itemized deductions. If your itemized deductions are larger than your standard deduction, itemized deductions should save you more on your taxes.

Medical & dental expense deductions

If you’ve spent over 7.5% of your gross income on medical or dental costs, you can use them as an itemized deduction. There are lots of different medical and dental expenses you can deduct, like copays, checkups, and even assisted living or memory care facility costs, which is just another one of the many benefits of moving to a community like The Ridge. Deductible expenses from senior care facilities can include:

• Entrance and monthly fees
• Housing fees
• Meal fees

Qualified charitable distributions

Seniors over the age of 70 ½ are able to make charitable contributions directly from their IRA account. This payment doesn’t count towards taxable income, but does count towards fulfilling required minimum distributions from your IRA. This option allows you to meet guidelines from the IRS so you don’t pay extra taxes, while supporting a cause that’s meaningful to you.

Other credits and deductions

While there are many tax credits, deductions, and exclusions available to all taxpayers, some can be especially relevant for seniors. One that can be particularly useful is for selling your house, which can exclude as much as $500,000 from your taxable income!

Tax filing resources

If you need support while filing for your taxes, you may qualify for free tax prep from the IRS. You may also want to sign up with the National Academy of Elder Law, which has a large collection of resources designed specifically to help seniors like yourself file taxes, plan your estate, find a lawyer, and more. Leveraging these resources can empower you to take charge of your taxes with confidence.

Supporting Seniors At The Ridge

At The Ridge, we’re more than just a senior living community—we’re a dedicated support system committed to helping seniors thrive. From alerting you to tax questions you should ask your advisor to fostering a vibrant social environment, every decision is made with our residents’ well-being in mind. 

Considering a move to a senior living community can be a significant decision, and we understand the importance of finding the perfect fit. If you’re considering a move or searching for a supportive community, The Ridge is here to make your transition seamless and fulfilling. Get in touch today.