Did you know there are special tax benefits for people aged 65 and older? It is important to understand how your age and sources of income affect your tax return to ensure you get the biggest refund you are entitled to or reduce the amount you may owe. If you are 65 or older, you are entitled to a larger standard deduction. This is one of the tax benefits that many senior citizens overlook. Older taxpayers also have a higher gross income threshold for filing, which means you may not have to file a tax return. But, if income tax was withheld from your pay or you qualify for the earned income tax credit, the additional child tax credit, or the health coverage tax credit, you should file a return to get a refund even if you are not required to do so. Either way, you will need to file a 2007 income tax return this year in order to qualify for the economic stimulus tax rebates. You may qualify for the credit for the elderly or disabled. If you were age 65 or older at the end of the tax year, or if you were under age 65 but retired on permanent and total disability and received taxable disability income, you may qualify for this credit. If you or your spouse are unable to care for yourself and outside care is needed while the other spouse is working, you may qualify for the Credit for Dependent Care Expenses. The credit is based on a percentage of the amount you pay for dependent care. You should also know that some of your Social Security benefits may be taxable, depending on many factors, including your total income and filing status. Produced for Jackson Hewitt Tax Service Inc.
Did you know there are special tax benefits for people aged 65 and older? It is important to unders...
