[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.amorusolaw.com\/blog\/common-retiree-mistakes-you-can-avoid-new-york-ny-greenwich-ct\/#BlogPosting","mainEntityOfPage":"https:\/\/www.amorusolaw.com\/blog\/common-retiree-mistakes-you-can-avoid-new-york-ny-greenwich-ct\/","headline":"Common Retiree Mistakes You Can Avoid","name":"Common Retiree Mistakes You Can Avoid","description":"\u201cRetirees preparing to file their taxes for this year should be aware of a number of common pitfalls, often-overlooked deductions and changes that stem from the tax overhaul two years ago.\u201d Did you know that there is a new federal income-tax form for seniors designed to make filing taxes easier this year, especially for those […]","datePublished":"2019-11-25","dateModified":"2024-08-07","author":{"@type":"Person","@id":"https:\/\/www.amorusolaw.com\/blog\/author\/amorusolaw\/#Person","name":"Amoruso & Amoruso, LLP","url":"https:\/\/www.amorusolaw.com\/blog\/author\/amorusolaw\/","identifier":5,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/12de032c04195e9c39a06a6d6eea182f7b4fa655c20e245f8094a244b5cdd0cb?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/12de032c04195e9c39a06a6d6eea182f7b4fa655c20e245f8094a244b5cdd0cb?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Amoruso & Amoruso, LLP","logo":{"@type":"ImageObject","@id":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/07\/amoruso-logo.svg","url":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/07\/amoruso-logo.svg","width":0,"height":0}},"image":{"@type":"ImageObject","@id":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/04\/6a01901dd0a082970b0240a4a14afe.jpg","url":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/04\/6a01901dd0a082970b0240a4a14afe.jpg","height":750,"width":1050},"url":"https:\/\/www.amorusolaw.com\/blog\/common-retiree-mistakes-you-can-avoid-new-york-ny-greenwich-ct\/","about":["Charitable Giving","Income Tax","IRA","Roth IRA \/ Roth Conversions","Social Security","Tax Planning"],"wordCount":471,"keywords":["Charitable Giving","Income Tax","IRA","Roth IRA","Social Security","Tax Planning"],"articleBody":"\u201cRetirees preparing to file their taxes for this year should be aware of a number of common pitfalls, often-overlooked deductions and changes that stem from the tax overhaul two years ago.\u201dDid you know that there is a new federal income-tax form for seniors designed to make filing taxes easier this year, especially for those who don\u2019t file electronically? It offers a larger font for easier reading and includes a chart designed to help taxpayers calculate their standard deduction. However, that\u2019s not all that has changed. The Tax Cuts and Jobs Act of 2017 (TCJA) has made for many changes that are often overlooked, reports Barron\u2019s in the article “Retiree Taxes: Pitfalls, Overlooked Deductions, Social Security Withholding“.People who turn 70\u00bd in 2019 may take their required minimum distribution as late as April 1, 2020.\u00a0 However, they must take their 2020 distribution by December 31, 2020, and a double distribution in one year may bump them into another tax bracket. Start planning now for your 2020 distributions. Here are more tips for the coming tax year.Standard Deduction. Many itemized deductions from 2018-2025 have been eliminated or restricted, and the standard-deduction thresholds were raised. For many taxpayers, itemizing deductions simply doesn\u2019t pay, especially for anyone who has paid off their mortgage and can\u2019t include interest in their deductions. However, there is a way for seniors to benefit from charitable distributions. Those 70\u00bd or older can donate up to $100,000 from their IRAs or Roth IRA directly to a charitable organization and that donation is not counted as taxable income. Note that the contribution must come directly from the custodian on the taxpayer\u2019s behalf.Medical Expenses. The threshold for medical expenses in tax year 2019 will revert to the prior level, after it was lowered in 2017 and 2018 by the new tax law. For 2019, taxpayers can deduct unreimbursed medical-care expenses that exceed 10% of their adjusted gross income\u2014their taxable income minus any adjustments to include such as deductions, contributions to Health Savings Accounts, or contributions to traditional IRAs, among others.Social Security Benefits Taxes. Whether Social Security benefits are taxable or not depends on the filer\u2019s income level. If the person\u2019s combined income\u2014their adjusted gross income plus any tax-exempt interest plus half of their Social Security benefit\u2014is more than $25,000 for those filing single, head of household or a qualifying widow or widower with a dependent child, or more than $32,000 for joint filer, their benefits will be taxed.It may be too late for tax year 2019, but taxpayers can avoid a tax surprise in 2020, by having federal income taxes withheld from Social Security benefits using IRS Form W-4V or from their pension using form W-4P.Reference: Barron\u2019s (November 2, 2019) “Retiree Taxes: Pitfalls, Overlooked Deductions, Social Security Withholding”For more information on elder law, retirement planning and estate planning, please visit my estate planning website."},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Blog","item":"https:\/\/www.amorusolaw.com\/blog\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"Common Retiree Mistakes You Can Avoid","item":"https:\/\/www.amorusolaw.com\/blog\/common-retiree-mistakes-you-can-avoid-new-york-ny-greenwich-ct\/#breadcrumbitem"}]}]