If you are retired and especially if you are on a fixed income, then finding clever ways to save money on taxes is critical. First, be aware of larger standard deductions which are available after you turn 65. You can still invest in IRA’s and also remember that you can deduct your medicare payments. Although tax day is April 15, it would be wise at this point to time those payments each quarter so as not to have one giant payment due in one day. You can also donate to charity as well as your own family. Then finally consider a vacation home which has very limited restrictions in this capacity.
- It’s important for individuals to maximize their tax savings during retirement, as income usually decreases.
- Many retirees don’t know about all of the tax deductions and solutions available to them.
- A large variety of tax deductions, opportunities, and strategies exist to reduce tax exposure in retirement.
“seniors often miss tax-saving opportunities, usually because they just don’t know about them.”