How to deduct medical expenses for clients over 65 Taxpayers who are 65 and older would be better off with an itemized deduction instead of a standard deduction if they paid Medicare insurance premiums and incurred hefty health care expenses last year, according to this article on MarketWatch. This strategy would allow them to make the most of these medical costs and save more on taxes. To determine if itemizing results in greater tax savings, seniors are advised to get the total amount of their deductible health care expenses, subtract the percent of adjusted gross income deduction threshold, add up their other itemized deductions and compare the total amount to the standard deduction.
Clients have 2 choices: reduce spending or scale back retirement lifestyle An Ipsos/USA Today survey found that a majority of Americans in the 45-65 age bracket believe that they will have to reduce spending in retirement, according to this article on USA Today. The survey also found that 27% of the respondents have neither retirement savings nor investments, and 22% said they have saved less than $100,000. “I find that to be a [relief] that people are aware they won’t have as much. We have fewer ostriches with their heads in the sand,” says a certified financial planner.
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