Income Tax Guide for Adults 65 and Older

Turning 65 does not mean you stop dealing with taxes. In fact, many adults 65 and older still need to file income tax returns. The rules are different once you reach retirement age, and many people are not aware of the tax benefits available to them.

At Local Tax, we help seniors understand what they owe, what they don’t owe, and how to keep more of their income.

Do You Still Have to File Taxes After 65?

A lot of people assume that once they retire, they no longer need to file taxes. That is not always true.

If you receive income from:

• Social Security
• Pension payments
• 401(k) or IRA withdrawals
• Part-time work
• Rental income
• Investments

You may still be required to file a return.

The filing requirement depends on your total income and filing status. The income limits are slightly higher for people 65 and older, which can reduce your chances of owing taxes.

Is Social Security Taxable?

Many seniors are surprised to learn that Social Security can be taxed.

If Social Security is your only income, you probably will not owe federal income tax. But if you also receive pension income, retirement withdrawals, or wages, part of your Social Security benefits may become taxable.

The key factor is your “combined income,” which includes:

• Adjusted gross income
• Nontaxable interest
• Half of your Social Security benefits

If this number goes over certain limits, you could owe tax on up to 85% of your Social Security benefits.

This is where planning makes a difference.

Retirement Accounts and Required Withdrawals

Once you reach a certain age, the IRS requires you to start taking money out of traditional retirement accounts. These are called Required Minimum Distributions, or RMDs.

RMDs are taxable income.

If you forget to take your required distribution, the penalty can be severe. Many seniors do not realize they are required to take these withdrawals even if they do not need the money.

Proper tax planning can help you avoid penalties and manage how much tax you pay each year.

Extra Tax Benefits for Seniors

Adults 65 and older qualify for certain tax advantages, including:

• A higher standard deduction
• Possible Credit for the Elderly or Disabled
• Medical expense deductions
• Property tax considerations

Medical expenses can sometimes be deducted if they exceed a percentage of your income. This can include:

• Doctor visits
• Prescription medications
• Health insurance premiums
• Long-term care costs

These deductions can lower your taxable income significantly.

Common Mistakes Seniors Make

Here are a few mistakes we see often:

• Not filing because they assume they do not need to
• Withdrawing too much from retirement accounts in one year
• Not adjusting tax withholding on pensions
• Missing RMD deadlines
• Overlooking medical deductions

Even small mistakes can lead to unnecessary taxes or penalties.

How Local Tax Can Help

At Local Tax, we work with seniors throughout Bellflower and Los Angeles County to make tax season simple and stress-free.

We help with:

• Social Security tax calculations
• Retirement income planning
• Required Minimum Distribution guidance
• Pension and investment income reporting
• Amended returns
• IRS letters or notices

Our goal is simple. Help you understand your taxes and avoid paying more than you should.

If you are 65 or older and have questions about your income tax, we are here to help.

Local Tax
9429 Somerset Blvd
Bellflower, CA 90706
Phone: (562) 925-2203

Schedule an appointment and let us review your situation before filing. A short conversation can save you money and give you peace of mind.

Local Tax – 9429 Somerset Blvd, Bellflower, CA 90706