Advertisement
Tax Breaks

4 Overlooked Tax Breaks for Retirees

Learn how to keep your tax bill low in retirement.

Being alert to the changes that come at various life stages is key to holding down your tax bill. Use these deductions to save at tax time.

1. Deduct Medicare Premiums

If you become self-employed after you leave your job, you can deduct the premiums you pay for Medicare Part B and Part D, plus the cost of medigap policies or the cost of a Medicare Advantage plan.

2. Spousal IRA Contribution

If you’re married and your spouse is still working, he or she can contribute up to $6,500 a year to an IRA that you own.

3. Give Your Money Away

If the estate tax might be in your future, take advantage of the annual gift-tax exclusion to give up to $14,000 annually to any number of people.

4. Bigger Standard Deduction

The extra money will make it more likely you’ll take the standard deduction rather than itemizing. If you do, the additional amount will save you almost $400 if you’re in the 25% bracket.

Advertisement - Article continues below

Check out even more overlooked tax breaks for retirees.

Advertisement
Advertisement

Most Popular

11 Dividend-Paying Stocks You Should Think Twice About
dividend stocks

11 Dividend-Paying Stocks You Should Think Twice About

Dividend-paying stocks often can be a store of safety, but 2020 has been difficult on income equities. These 11 picks look like shaky plays despite th…
September 21, 2020
Medicare Basics: 11 Things You Need to Know
Medicare

Medicare Basics: 11 Things You Need to Know

There's Medicare Part A, Part B, Part D, medigap plans, Medicare Advantage plans and so on. We sort out the confusion about signing up for Medicare --…
September 16, 2020
Where You Should Invest Now
investing

Where You Should Invest Now

Kiplinger.com senior investing editor Kyle Woodley joins our Your Money's Worth podcast to answer investor questions about tech stocks, the election a…
September 22, 2020

Recommended

The Annuity With a Tax-Planning Twist
Financial Planning

The Annuity With a Tax-Planning Twist

A qualified life annuity contract helps retirees with guaranteed payments to last their entire lives.
September 21, 2020
Election 2020: Joe Biden's Tax Plans
taxes

Election 2020: Joe Biden's Tax Plans

With the economy in trouble, tax policy takes on added importance in the 2020 presidential election. So, let's take a look at what Joe Biden has said …
September 18, 2020
Now’s the Time for Estate Tax Planning
Financial Planning

Now’s the Time for Estate Tax Planning

There's a wealth of opportunity with IRS interest rates at an all-time low and the federal estate and gift tax exemption at an historic high.
September 18, 2020
Most-Overlooked Tax Breaks for the Newly Divorced
tax deductions

Most-Overlooked Tax Breaks for the Newly Divorced

Filing taxes after a divorce can add yet another problem to an already long list of challenges. But here are some tips to make your return to single l…
September 18, 2020