Tips for Retirees: Lowering Your Taxes

We at Tribute Homes strive to make retirement as simple and carefree as possible for retired seniors. Our active living retirement homes are more than just brick and mortar; they are a mission built on providing our homebuyers with a comfortable and financially beneficial lifestyle in their adult years.

One of the great things about Tribute Homes in North and South Carolina is the tax benefits that come from moving to, or living in, the sister states. In addition to some great state tax incentives, however, there are other important deductions that can help lower taxes, such as:

Medical and Dental Treatments
Healthcare costs and medical bills make up the largest expense for retirees. The good news is much of your medical care costs are deductible. That can include insurance premiums (including Medicare and Long-term), prescription medications, and nursing home and assisted living care centres. Although medical expenses are deductible only when they exceed 7.5 percent of your adjusted gross income (AGI), for most seniors that limit is often attainable.

Retirement Plan Contributions
Being retired does not mean you can’t make tax-deductible contributions to retirement plans. You can still lower taxes by contributing to a traditional IRA, Roth IRA or 401(k), deducting the amounts from your retirement income. If you own a business, as many retirees do, you can establish SEP-IRAs, Simple IRAs, Keogh plans and solo 401(k) plans that allow higher contribution limits for those 55 and over.

Investments
One of the best ways to earn money when you retire is by way of interest, dividends and capital gains from investments. Unlike employment or business income, dividends and capital gains are not subject to social security or Medicare taxes, and they are limited to a 15 percent maximum tax rate. Additionally, most fees associated with a variety of investment and accounting services may also be counted as deductions.

Business Expenses
Many retirees continue to run their own businesses and find it a great way to lower taxes. All business expenses incurred may be deducted, along with the cost of any equipment used for business purposes, whether at home or in an office.

Charitable Donations
Retirees love giving back to their communities, and their charitable contributions make great itemized deductions that can help lower taxes. Cash donations of up to 50% of the AGI can be annually deducted, and property donations, although with a few more limitations, can really add up to some great tax write-offs.

Tribute Homes builds retirement communities for active senior living in and around Charlotte NC and Charleston, SC. For more information on our new retirement homes call us at 800-381-2984 or visit us at www.tributehomesusa.com