Mike DiSabatino CPA
Age (not death!) and Taxes
Age (not death!) and Taxes
Age does matter, when it comes to tax obligations
One of the elements that make our Federal Tax Code so hard to follow is that different laws apply to you based on your or your dependents’ age. To help you navigate through some of this maze here is a chart that outlines key ages and how it applies to your tax obligation.
|
Age |
Tax Code |
Impact |
| 0+ one day | New birth | Creates a new dependent and tax exemption. |
| 12 | Dependent Care Credit | This credit is gone for those age 13 and over so plan accordingly. |
| 17 | Child Tax Credit | This popular credit is no longer available for those age 17 or over. |
| 19 | Earned Income Credit Education Credits | These credits disappear when your qualified dependent or taxpayer is over the age of 19 (also see age 24). |
| 24 | (see age 19 limits) | But wait! If your qualified taxpayer is over the age of 19, but still a qualified student, the extended age limit becomes 24. |
| 50+ | Health Savings Accounts | Age at which you may donate additional funds to your HSA using a catch-up provision. |
| 55+ | Qualified Retirement Account Contributions | You now have the ability to add to your annual contribution to select retirement accounts through this “catch up” provision. This includes: IRAs, 401(k)s, 402(b)s, Sep IRAs, SIMPLE and others. |
| 59 ½ | Retirement Accounts | Age you may begin withdrawals from qualified retirement accounts without receiving a pre-payment penalty. |
| 62+ | Medicare and Social Security | Medicare sign-up. Social Security retirement benefits may begin depending on your date of birth. |
| 70 | Social Security | The age where Social Security retirement benefits are maximized if you delay starting Social Security payments. |
| 70 ½ | Qualified Retirement Account Distributions | Minimum distributions are required from select retirement accounts like Traditional IRAs, 401(k), Sep IRA, SIMPLE IRAs and more. |
Please note. This chart is not meant to be all-inclusive. These age trigger dates outline some of the major tax events that relate to your age. Use this information to start a conversation with a qualified expert to organize and plan accordingly.
Please give us a call to discuss these and other profit-boosting ideas for your business.
DiSabatino CPA
Michael DiSabatino
651 Via Alondra Suite 715
Camarillo, CA 93012
Phone: 805-389-7300
ww.sharpcpa.com
This publication provides summary information regarding the subject matter at time of publishing. Please call with any questions on how this information may impact your situation. This material may not be published, rewritten or redistributed without permission, except as noted here. All rights reserved.
