Tax Tips for Baby Boomers

Every year brings new changes to the tax code, but a change of residence, employment, marital status, and age brings changes that can have a serious impact on your income tax returns, and having all of your information in order before visiting the CPA will save you time and – possibly – money.

Change of Residence
Georgia ranks as one of the most tax-friendly states for retirees, and falls right in the middle in terms of property tax ranking, according to Today.com. Also, if you sold your primary home last year and had a gain from the sale, you may be able to exclude up to $250,000 on an individual return or $500,000 on a joint return.

Employment
As of 2012, the exemption on most retirement income is capped at $65,000 per spouse for individuals ages 65 and older, and $35,000 for certain taxpayers between ages 62 to 65.

Marital Status
If your spouse passed away in 2013 and you have not remarried, you are still eligible to file a joint return. To ensure you have the appropriate forms and deductions for your tax return, review a copy of IRS Publication 559, Survivors, Executors, and Administrators, available from IRS.gov.

Age
In Georgia, there is no tax on Social Security benefits, estates, or inherited properties. In addition, many counties and municipalities throughout the state allow senior adults an exemption from the local or county school tax. Pensions also are exempt to a certain extent in Georgia, making it a very “retirement-friendly” state.

AARP Tax-Aide is a free service to help low- to moderate-income taxpayers, especially those age 60 and older, beginning February 3, 2014, in Cobb County. AARP Tax-Aide volunteers are trained and IRS-certified each year to ensure they are up-to-date with all revisions to the U.S. Tax Code.

Flexible spaces such as the inviting casita or guest room-office provide the right combination of space, comfort, and natural light to make even the most mundane tasks more enjoyable. You might even say tax returns are more pleasant at Windsong – Where Life’s A Breeze!

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