Simplified Taxes For Seniors

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Simplified Taxes For Seniors
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• Did you know that there is now a new, simplified
  tax form for those who are already 65 or older
  or for those who may turn 65 this year? Known as
  the 1040SR, its provided for in section 41106 of
  the Bipartisan Budget Act of 2018, or BBA, a
  two-year budget agreement passed by Congress and
  signed by the President in February of last year.
• In fact, there were several changes to tax
  policies related to retirement that were included
  in the BBA, and its important not to confuse
  these with the Tax Cuts and Jobs Act that was
  passed in 2017.
• Well look in a little more detail at Form 1040SR

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• Similarities and differences between the new form
  and Form 1040EZ
• For seniors with uncomplicated finances, the
  1040SR will be very similar to Form 1040EZ and
  should be much simpler. The new form will also
  allow for income to be documented from other,
  specified sources, and listed below are a few of
  the other small differences between the old and
  new form
• Only for those who are 65 and older
• While Form 1040EZ is only available to those
  under the age of 65 who meet the income and
  filing requirements, Form 1040SR is for those who
  are aged 65 and above by December 31st 2019, or
  by the end of the tax year for which you will be
  filing.

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• Being retired isnt necessary and if youre still
  working at 65 and otherwise qualify for a 1040SR,
  then you can still do so. However, those who have
  retired while under the age of 65, may not use
  it.
• There is no income test
• Unlike Form 1040EZ, which limits interest income
  to 1,500 and total income to 100,000 or less,
  the 1040SR has no limit on the amount of your
  total income for a given taxable year.

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• Income categories have been expanded
• Youre permitted to include several types of
  income with a Form 1040SR in addition to those
  permitted by Form 1040EZ, such as wages, tips or
  fellowship grants, and it allows you to include
  Social Security benefits along with distributions
  from qualified retirement plans, annuities or
  similar deferred-payment arrangements.
• Tax deductions for Form 1040SR
• If youre 65 or over, youre entitled to an extra
  1,300, that would raise the standard deduction
  to 13,300 for the tax year 2019, which is the
  first year that youre permitted to use the new
  form.

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• If youre married and one of you is 65 or over,
  the deduction would increase to 25,300, while if
  both are over 65, it would rise to 25,600.
• Filling an important gap for older citizens who
  are not entitled to use Form 1040EZ, the new Form
  1040SR simplifies the tax filing requirements,
  but its by no means flawless. To discuss your
  filing options as a senior citizen, reach out to
  your preferred tax specialists, who will talk you
  through your options and guide you through the
  process.

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• At Heyer Associates, we proactively assist our
  individual and small business clients in meeting
  their goals. Our key area of focus is ensuring
  that our clients remain compliant with federal
  and state tax laws by providing them with high
  quality accounting and tax service Coral Gables.
  If you are looking for individual tax preparation
  in Miami, Heyer Associates would be a right
  option.