Jarvis Law Office

Ohio Estate Planning Lawyer Explains the Top Four Tax Deductions for Senior Citizens

Retirement years are all about making sure you have enough money to live a comfortable life while also having access to “rainy day funds” to take care of any unforeseen financial difficulties that may arise. That’s why it’s so important to take advantage of the tax deductions that are available for senior citizens, since these deductions can maximize the amount of money you have to use in your retirement. The following are the top four tax deductions for senior citizens:

Medical Expenses

One of the biggest expenses for senior citizens is medical care, which is why the deductions associated with medical expenses can be a huge help come tax time. Medical and dental expenses that are more than 10% of your adjusted gross income are deductible, meaning any expenses related to health care services, doctor visits, medications, and medical devices.

 

Business Expenses

Retirement businesses are a common way for senior citizens to continue to earn income after their main career has ended. Any necessary and ordinary expenses incurred while running your retirement business may be claimed as a deduction, including the purchase of business equipment, a vehicle used for business purposes, and business travel.

 

Investments and Expenses

Interest, capital gains, and dividends from your investments are generally taxed at a lower rate than normal income and are not subject to Medicare or Social Security taxes. Additionally, any fees spent for investment advice or accountant services can be itemized as long as they exceed 2% of your adjusted gross income. These fees include legal, financial planning, and accounting fees, online investment services fees, and even investment newsletter subscriptions.

 

The Standard Deduction

The standard deduction is sometimes overlooked as a great tax deduction for senior citizens, especially if they are no longer itemizing deductions. Senior citizens (in this case, anyone who is age 65 or older by December 31^st) are entitled to a higher standard deduction than others, so it’s worth considering if the standard deduction is right for you. In addition, the standard deduction can be claimed on a joint return if at least one spouse is over age 65.

If you would like to get more information about tax deductions for senior citizens, or if you’d like to review your current finances and how they work with your future plans, please contact our office at 877-653-3450 to schedule a complimentary initial consultation.

Ohio Elder Law Attorney: Make it Easy for Your Family to Claim Your Retirement Benefits After Death

Claims for retirement benefits after death can be difficult for families if they don’t have the right information.   Fortunately, there are steps you can take now to ensure that your retirement accounts pass smoothly to your loved ones when you are gone someday.

For starters, each retirement account you own should have a named beneficiary, whether that’s a spouse, children, or other family members. By naming a beneficiary, you ensure that any remaining funds in those retirement accounts are passed on to the beneficiary without them having go through a process called probate, which can cost a lot of time and money.

In order to make it easy for your family to locate all of your accounts, it’s a good idea to create a list that includes your account names, the account types, where they are held, who the beneficiaries are, and any information your loved ones would need to access the accounts in the event of your death.

This list may change occasionally depending on the type of account and the amount of money it holds, so it’s important to review your accounts on a regular basis and update the list as necessary. An Ohio elder law attorney can help you compile a list with all of the correct information and assist with reviews to make sure your distribution plan matches up with your current situation and your wishes for your family. Your attorney may also keep a copy of the list to assist your family in claiming their retirement benefits in the event of your death.

Don’t forget that in addition to retirement benefits, your family may be eligible for survivor benefits from Social Security following your death, typically the full amount you would have received. There are certain eligibility qualifications that must be met for this to happen: your spouse must either be at least 60 years old, 50 years old and disabled, or caring for minor children. Children can also receive benefits if they are under 18, in primary or secondary school, or disabled before the age of 22. An experienced Ohio elder law attorney can help you determine whether your loved ones are eligible to receive Social Security benefits in the event of your death.

If you would like to get more information about retirement benefit claims after death, or if you are currently working on receiving retirement benefit claims and would like to discuss your options, please contact our Ohio elder law attorneys at 877-653-3450 to schedule a complimentary initial consultation.

Advance Health Care Directives and Mental Health Care in Ohio

Advance Healthcare Directives commonly known as a Living Will and Healthcare Power of Attorney, typically concerns all aspects of health care, including mental health care. However, if you’re concerned about your own or a loved one’s mental health for the future, it may make sense to list out special instructions regarding mental and psychiatric health care to help guide your chosen agent.

Mental health issues cover a large range of possibilities, including medication, commitment, and treatments received in a psychiatric facility. There can be side effects from certain psychiatric medicines that may sway you away from having them prescribed, so it’s important to gain as much information about these medications as you can when creating your advanced medical directives. Commitment and treatments such as electroshock therapy come into play for serious psychiatric disorders and would most likely be out of your control, but it may help to speak with a medical professional and an Ohio elder law attorney to learn about the options you have if these treatments are deemed necessary.

For seniors, the most common mental health care issue is dementia, including Alzheimer’s Disease and Lewy Body brought on by Parkinson’s. When creating an Advance Healthcare Directive that addresses mental health concerns, it’s important to discuss the options that may be available to you with a physician or mental health professional. In addition, you’ll want to include your agent – the person entrusted with making health care decisions on your behalf if you become incapacitated – in discussions about your mental health care so they are aware of your wishes and can address any concerns with you before the time comes.

As noted above, most Advance Healthcare Directives cover mental health issues; however, having an overlapping document that specifically details your wishes for future mental health care would provide an extra layer of protection and possibly remove some questions and doubt for your agent. Keep in mind that any health care crisis is stressful for health care agents and that having advance directives that convey your wishes will help put their mind at ease. 

If you would like to get more information about mental health care and advance medical directives, or if you’d like to discuss a current situation concerning mental health issues and advance directives, please contact our Ohio elder law firm at 877-653-3450 to schedule a complimentary initial consultation.