Hidden Tax Breaks for Retirees

Property Tax Breaks

Amelia Josephson of SmartAsset suggested that seniors consider property taxes in retirement. “Homeownership is an excellent way for seniors to secure their long-term housing costs, but high property taxes or property taxes that increase rapidly from year to year sometimes discourage retirees from owning a home,” she said.

Some states encourage homeownership by seniors and provide exemptions or circuit breakers on property taxes.

“Exemptions usually enable seniors to protect part of their home’s value from property taxes,” said Josephson. “Most exemptions have income limits, so households with high earnings may not qualify.”

Make your year-end tax planning easier. Keep meticulous records of medical-related payments with receipts, other medical information and tax forms. During your tax preparation, talk to a professional tax consultant for tax advice and help meeting the requirements. And, make the most of any write-offs in your retirement years.