Tax Preparation for Seniors: What You Need to Know

Tax preparation for seniors comes with its own set of rules, benefits, and potential pitfalls. From Social Security taxation to Required Minimum Distributions (RMDs), the rules can be confusing—and getting them wrong can be costly. At London’s Tax Services LLC, serving Westchester and Rockland County, we specialize in helping seniors and retirees navigate these complexities with confidence.

Is Social Security Taxable?

Yes: but not always. Whether your Social Security benefits are taxable depends on your “combined income” (adjusted gross income + nontaxable interest + 50% of Social Security benefits). If your combined income exceeds certain thresholds, up to 85% of your benefits may be subject to federal income tax. A tax professional near you can calculate your exact exposure and help you plan around it.

Required Minimum Distributions (RMDs)

If you have a traditional IRA, 401(k), or other tax-deferred retirement account, you must begin taking Required Minimum Distributions (RMDs) at age 73 (as of the SECURE 2.0 Act). Failing to take your RMD or taking less than required, can result in a significant IRS penalty. Our team ensures you take the correct distributions and report them accurately.

Additional Standard Deduction for Seniors

Taxpayers age 65 and older are entitled to a higher standard deduction than younger filers. For 2024, the additional deduction is $1,550 per person ($3,100 for married couples where both spouses are 65+). This is an often-overlooked benefit that can meaningfully reduce your tax bill.

Medical Expense Deductions

Seniors often have higher medical costs. If you itemize deductions, you can deduct qualifying medical expenses that exceed 7.5% of your adjusted gross income. This includes out-of-pocket costs for doctors, hospitals, prescriptions, hearing aids, dental care, and long-term care premiums.

Free Tax Preparation for Qualifying Seniors

Seniors with income below certain thresholds may qualify for free federal tax preparation through IRS programs such as VITA or Tax Counseling for the Elderly (TCE). However, if your situation involves rental income, investments, small business activity, or multiple retirement accounts, working with an experienced professional ensures nothing is missed.

Planning Ahead: Estate and Gift Considerations

Tax planning for seniors often extends beyond income taxes to include estate planning strategies, gifting limits, and the stepped-up basis on inherited assets. A proactive conversation with our team can save your family significant money down the road.

London’s Tax Services LLC has extensive experience helping seniors in the Westchester and Rockland County area navigate retirement taxation with clarity and confidence.

Ready to get started? Contact London’s Tax Services LLC at (646) 917-7714 or visit londonstaxservices.com to schedule your free consultation today. Serving Westchester, Rockland County, and the greater New York area.