It is very important to keep in mind that there are certain deductions very appropriate for seniors which are not commonly deductable for most individuals. I prepare many amended returns for clients whose tax preparers were not aware of these important tax deductions. Please keep them in mind and communicate the appropriate information to your tax preparer, so you, too, receive the appropriate deductions. Here are just a few items you may wish to consider.
Deduction of Long Term Care Expenses
Keep in mind that if you require assistance in your home, and pay for any type of care assistance upon the recommendation of a physician, nurse or social worker, this cost may be deductable to you from your income.
Use your Retirement Funds for Long-Term Care Costs
Furthermore, if you are in retirement, now is the time to use your retirement funds. These accounts, when transferred to your children, will be taxable to them. There is no way around it - retirement funds are taxable to their owner and they are taxable to a beneficiary who inherits it. Therefore, now is the time to use those funds, especially if you have deductions for care expenses.
Deduct Home Improvements
Additionally, improvements to the home which allow you to remain in your home longer may also to be construed as a taxable expense so long as your physician deems it necessary. So ask your physician to sign documents prepared by your attorney that ensure these items are deductable to you and save you from paying a Uncle Sam if not absolutely necessary.
If you have any questions regarding your taxes and would like to consult with an attorney at our firm to prepare documentation to permit these deductions, please call 708-675-7144.