Shopping for Long-Term Care Insurance

QUICK TAX FACTS FOR SENIORS

What if I sell my home?

If you have a gain from the sale of any home, you can exclude $250,000 ($500,000 on a joint return) of gain from taxes. Generally, you must own and use the home for at least two years prior to the sale. This allows most seniors to sell their home tax-free.

Can increased medical expenses reduce my taxes?

If you are able to itemize your deductions, you can deduct amounts you pay for medical and dental expenses not covered by insurance. This type of deduction is reduced by 7.5 percent of your adjusted gross income. Be sure to check the list the IRS provides (IRS Publication 502, Medical and Dental Expenses, available online at www.irs.gov). Many seniors are not aware of everything that qualifies such as artificial teeth, hearing aids, eyeglasses, wheelchairs, and prescription medication.

If my spouse dies, are the life insurance proceeds taxable?

Life insurance proceeds are generally not subject to income tax. For a spouse, life insurance proceeds are generally not subject to estate taxes because of the unlimited marital deduction for spousal estate gifts.

The year my spouse dies, what income tax issues do I need to know about?

The year your spouse dies, you may still file a joint return. This will result in the payment of less tax (unless you remarry before the end of the year). Your spouse’s estate may be required to file an income tax return for income received after your spouse’s death.

Do I qualify for any special tax credits as a senior?

The Earned Income Credit (EIC) may be available if you are working and your earnings are low. You must have a child or grandchild who is a qualifying child (see IRS Publication 596). Also, a credit for the elderly or disabled is available to certain low-income seniors and disabled persons (see IRS publication 524).

This article does not constitute tax preparation advice and is not a substitute for professional counsel.

Randall K. Barton

Former President/CEO

The Assemblies of God Financial Solutions,

Foundation Trust and Investment Services

1661 N. Boonville Avenue , Suite D

Springfield , MO 65803

Phone: 417-865-4880

Fax: 417-865-5141

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