Senior citizens, who are unable to take care of their finances and taxes due to several reasons, find a great helper and advisor in a fiduciary. A fiduciary takes care of all the financial issues of individuals who cannot make critical decisions in such matters on their own. A fiduciary has the experience and expertise to minimize conflicts of interest in family situations and provide a senior a life that is he/she truly deserves.
The government has tax deductions in place for senior citizens but they often don’t know how to use those deductions to their advantage. A fiduciary helps senior people use such deductions to reduce their income taxes every year. The following are the deductions that fiduciary make use of in order to benefit their senior clients in regards to income tax preparation. Standard Deduction A taxpayer has the option to go for either standard deduction or he/she can itemize their personal deductions on IRS Schedule A. A fiduciary can advice you to go with standard deduction if your personal deductions, which could include donations, medical costs, mortgage interest, etc., are not greater than relevant standard deduction. Medical Costs Senior citizens often have to spend a great amount of money on dental and medical expenses. A fiduciary makes sure that such expenses can be compensated with the help of itemizing their clients personal deductions. These personal deductions include premiums of health insurance, prescribed drugs costs, nursing care, etc. Itemizing these deductions makes medical expenses deductible from income tax. Donations While seniors may have done charity out of pure selflessness, their donations and charitable acts nevertheless come back to benefit them and a fiduciary knows how to use such acts to their client’s advantage. Charities and donations are deductible as itemized deductions and a fiduciary knows how to use them.
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