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How Being a Senior Can Help YOUR Tax Return

Worried senior man with tax documentsAs tax day quickly approaches, knowing what tax breaks are available could help you this tax season.

Here are some great tax breaks for those 50 and over from

Bigger standard deduction
The standard deduction is $7,850 for taxpayers age 65 and older in 2016, which is $1,550 more than the standard deduction for younger people.

Higher tax filing threshold.
People age 65 and older can earn a gross income of up to $11,850 ($23,100 for couples both age 65 and older) before they are required to file a tax return.

Property tax breaks.
In some places, people who are above a certain age and who also earn below a specific income level qualify for property or school tax deferrals or exemptions

Additional IRA deduction.
Workers age 50 and older can contribute an additional $1,000 to an IRA, or a total of $6,500 in 2016.

401(k) catch-up contributions.
Employees age 50 and older can defer paying income tax on $6,000 more than younger workersif they contribute that amount to a 401(k) plan, or a total of $24,000.

No more early withdrawal penalty.
Once you turn age 59 1/2, you can withdraw money from an IRA for any reason without incurring the 10 percent tax for early withdrawing.

Avoid tax on required minimum distributions.
Retirees ages 70 1/2 and older who transfer any amount up to $100,000 directly from their IRA to a qualified charity will not owe income tax on the contribution.

Higher HSA contribution limit.
Individuals who are age 55 or older by the end of the tax year are eligible to contribute up to $4,350 to a health savings account, $1,000 more than their younger counterparts.

Lower threshold to deduct medical expenses.
People who are age 65 or older are eligible to deduct medical costs that are more than 7.5 percent of their adjusted gross income.
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