Tax Relief Benefits for Retirees
- Retirees may have tax relief coming from the federal or state government.man in park image by Janet Wall from Fotolia.com
Senior citizens who have decided to retire may sometimes struggle to meet tax obligations. While the federal government offers some support to retirees, each state has the ability to alleviate tax stress for retirees if they so choose. Different states implement different tax relief regulations to help retirees. - Many states offer tax relief on property tax. Massachusetts and Connecticut both implement a circuit breaker tax credit. In Massachusetts, retirees who have paid rent or real estate that is more than 10 percent of their income are given a tax credit on state taxes. In Washington, a retiree who meets income requirements has the value of their home frozen. This means they pay property tax on the amount the house is currently worth for as long as they qualify. If the house value goes up, it does not affect the senior citizen. In Florida, those over 65 years old who meet certain income guidelines can claim an exemption of $50,000 from the assessed value of their home. Each state varies in what tax relief they offer retirees.
- For those retired from the military, there are ways to be exempt from paying taxes. The amount they are exempt from is based on how long the served, if they are disabled and what their gross pay was during their time of service. Any amount above and beyond that is taxable.
- Those individuals who are retired, aged 65 or over and meet certain income requirements can complete a short form provided by your state vehicle license agency and turn it in by the specified dates. The cost of renewing or registering your car will be waived in some states. Virginia and West Virginia are among the states that offer relief by canceling property tax on a motor vehicle.
Property Tax
Military Disability Retired Pay
Auto Relief
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