Contact Information: Press Contact: Michael Azzano Cosmo PR for Golden Gateway Financial 415.596.1978
Retirement Experts Share Year-End Tax Tips for Senior Citizens
Reverse Mortgages Can Provide Injection of Tax-Free Money Before Year-End
| Source: Golden Gateway Financial
OAKLAND, CA--(Marketwire - December 1, 2008) - As the end of a challenging financial year
comes to a close, many senior citizens are searching for new ways to save
money during their retirement. Retirement expert Eric Bachman and Certified
Public Accountant Jeanne Duhe share six year-end tax tips that are simple
yet intelligent ways for senior citizens to save money on their 2008 taxes.
1. Take a Senior Citizen Deduction
The IRS allows those age 65 and over to take an additional deduction worth
$1,350 for single filers or $2,100 for a married couple. This also applies
to individuals who do not itemize their deductions because it is added to
their standard deduction.
2. Claim Stock Losses Now
Those seniors with stock losses should consider taking them before
year-end. Losses are used to offset any stock gains, including gain
distributions from mutual funds. In addition to offsetting gains, seniors
can claim up to $3,000 in losses per year to effectively reduce taxable
income for 2008. Any losses in excess of that amount are carried forward to
future returns.
3. Seniors Seeking Cash Should Consider a Reverse Mortgage
Income earned from a reverse mortgage is tax free, meaning that seniors in
need of cash can unlock the equity in their homes as a lump sum payment in
2008 with no tax implications. A reverse mortgage remains a viable
financial tool for those 62 and older because it does not take into account
credit history or a borrower's current financial situation.
4. Pay Outstanding Medical Bills Now
An individual with either a low taxable income or large medical expenses
should consider paying all outstanding medical bills before the end of the
year as an additional deduction. This would include supplemental health
insurance, doctor bills, hospital bills and prescription drugs. Eligible
deductions also include medical mileage, the number of miles traveled to
and from the doctor, pharmacy, or hospital.
5. Be Aware of Social Security Income Threshold
Those senior citizens who continue to work while drawing social security
should be aware of mandated income thresholds. If income exceeds $25,000
for one person or $32,000 for a married couple, then social security begins
to be counted as taxable income. This can be a large burden on senior
citizens. If a senior is close to these income limits, they should consider
pushing some income into next year to protect all of their social security
from income taxes.
6. Understand IRS Rules for IRAs
The IRS requires taxpayers to begin withdrawing funds from their IRAs in
the year after the year they turn 70 and one half. In that instance,
seniors would then be obligated to take two withdrawals to include the
current year, potentially entering them into a higher tax bracket. In most
cases then, seniors should plan ahead and begin withdrawals in the year
that they actually turn 70 and one half to avoid this scenario.
"Senior citizens are being squeezed like never before and need to take
advantage of any savings available to them," said Eric Bachman, founder and
CEO of Golden Gateway Financial, a comprehensive online financial resource
for seniors and retirees. "With a few savvy moves, senior citizens can save
themselves hundreds or even thousands of dollars in income taxes."
"Older Americans need to be aware of the benefits made available to them by
the IRS," said Duhe, a certified public accountant and principal of Jeanne
S. Duhe, LLC. "These are effective ways to save money in order to extend
existing budgets even further."
For more tips or to find information about Golden Gateway Financial's
industry leading suite of online retirement assessment tools and resources,
please visit www.goldengateway.com. Golden Gate Financial encourages senior
citizens to always seek personalized advice from qualified professionals
regarding their financial situation.
About Golden Gateway Financial
Golden Gateway Financial, located in Oakland, California, is a
comprehensive resource for senior citizens, baby boomers and soon-to-be
retirees to assess their financial health at retirement. Golden Gateway
helps clients reduce money concerns and live better during what should be
the best years of their lives. The company's recognized resources, online
tools, and award winning calculators make it the intelligent choice for
seniors and their families who want unbiased and clear communication,
comparison shopping for a reverse mortgage or life settlement, and related
services to help enjoy retirement. www.goldengateway.com