#4 Take advantage of all the tax deductions that you are eligible for!
Another way in which you can save money when doing your taxes is to make sure that you take all the tax deductions that you can. Not only as a senior but also throughout your life, you will be eligible for a number of deductions from your overall income tax, and you should make sure to check and do everything you can in order to take advantage of these. After all, why pay more money than needed on taxes when you can save them for other purposes?
The tax deductions you could be eligible for are:
- Part of your home property taxes and even your home mortgage: this one is available to all taxpayers, whether you itemize or not, which is why you should contact a tax professional if you were unaware of it before.
- If you have installed gadgets or replaced things around your home to make it more energy efficient, there is a chance you qualify for energy tax credits. From solar hot water to windows, most improvements could make you eligible, so check the guidelines on the IRS website.
- For an electric car. Like with the previous point, you should check the number of credits and what cars are eligible on the site.
- If you still have dependents under the age of 18 on your tax record, you could get an expanded child tax credit (CTC) and get some credit. Check the details and what counts towards CTC eligibility on the IRS website.
