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If you are stuck to plan home remodeling or searching latest home decor ideas. Then go through our ideas and add some more value in your home. We bring latest and creative home decoration ideas.
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Gather a complete set of basic knowledge about the services that you are looking for and what is expected while hiring a Payroll company for your business.
HOW TO INCREASE YOUR PROFITS BY DIGITAL MARKETING
You noticed all the entrepreneurs are talking about digital marketing these days. Promising to boost their profit margins and ROI. What is all the buzz about? First of all, you need to understand what digital marketing is?
Important tax planning strategies
An important thing to realize is that there is not one type of tax returns or one kind of Tax Planning. There are long term tax plans as well as short term ones. The long-term plan lets you decrease your taxes at both the begging and end of the year.
Income Tax slab for Senior Citizens USA (2020): Benefits and Deductions
Income Tax slab for USA
We all want a lifestyle in which we want to earn endless and do not worry about anything to make our tomorrow a better and brighter one. We all make money and save as much as we can so that we do not have to face any inconvenience when we need it the most. Most of us dedicate their lives to do something that can be helpful in contributing to the family as well as for the growth of the country. Besides our monthly expenses, we also have a big responsibility to pay income tax on a regular basis.
Every taxpayer in our nation is supposed to pay a considerable amount to the government and this is something that we are doing since long even if we become senior citizens of the country. If you do not have any idea how to pay income tax you can always contact tax adviser if you are living in Croydon.
Being senior citizens, there comes a point in mind, that there should be income tax benefits for senior citizens so that they can reduce their financial burdens as they have been doing it since they were young. For this matter. Let’s discuss who the senior citizens are?
Who is considered to be the senior citizen in USA?
latest income tax rates 2020 for usa
According to the law, a senior citizen is basically an individual resident who falls the age group of 60 to 80 years as on the last day of the previous financial year. And a super senior citizen is an individual resident who is above the age of 80 years, as on the last day of the previous financial year.
So for the individuals of these age groups, there should be some income tax benefits offered. When we talk about the history of USA, it is flooded from a culturally enriched background where elders are treated with respect and love. These elders are taken care of so that they can guide the young generation on all events whether they are happy or odd.
And to keep the culture going, the government keeps the cycle of culture and moral value high so that there could be income tax benefits for the senior citizens. The main purpose of this step is to relieve the senior citizens from the stress of financial at this age of life.
So if you or the senior citizens in your family are planning their funds, it might be crucial to know about the benefits and deductions of income tax for senior citizens. Here are some special income tax benefits and deductions for senior citizens so that they can have relief.
1. The benefit of medical insurance
According to law, under section 80 D, the senior citizens are offered an income tax benefit on the health insurance premium up to 50,000/-. Before this, the limit of health insurance premium was Rs.30,000/- for the senior citizens.
For super senior citizens, under section 80 D, the deduction is allowed on the payment of medical premium and the actual expenses which are incurred on the treatment.
When senior citizens hit the age of 80 and above, they always need money for their medical treatment. So giving them this benefit of income tax and deduction can be a great help for them.
2. The basic exemption benefit
Every individual, who falls in the income tax slab 2020 under the bracket of paying tax, can have some elementary tax waivers in USA. While when it comes to senior citizens, the government has set up this basic exemption limit up to Rs.3 lakhs. For the slab of 3 lakhs to 5 lakhs, the senior citizens will be paying a tax of 5%.
3. Privilege on the amount of interest income
If the senior citizens are resident individuals of USA, then they will have to pay a tax amount on the income of interest earned up to Rs.50,000/- in a financial year.
According to the law, under section 80 TTA of income tax 2020, it will include the account of the interest earned, the bank account of the person, deposits in bank or deposits in the post office. When the senior citizens are filing their income tax return, they will have to start filling from 15H. The amount of interest earned is over Rs.50,000 will attract the tax that is according to the 2020 tax slab rate for senior citizens.
4. No advance tax
When it comes to ordinary individuals, they will have to pay tax in the liability is Rs.10,000/- or more than this amount in a financial year. Advance tax is basically the amount that is supposed to be paid in advance to the USA government by the citizens. If you bring the senior citizens in this bracket, it would not be fair for them.
5. Exemptions on the treatment of specific diseases
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The government of USA allows ordinary citizens not to pay tax if the amount of expenses of the treatment is close to Rs.40,000/-. While when it comes to senior citizens, under section 8-DDB of the income tax, the senior citizens are allowed to get a deduction limit of Rs.1 lakh if they undergo the treatment of any specific disease, any critical illness in a financial year.
6. Benefits for income tax return
Super citizens, who fall in the age group of over 80 years, they can file their income tax return through either Sahaj (ITR1) or Sugam (ITR4). They have the choice to file it either electronically or manually for their VAT return.
7. Tax exemption under the reverse mortgage scheme
It allowed senior citizens to reverse mortgage for any of their accommodation to make monthly earnings. However, the ownership will still remain with the senior citizens are they will be given monthly payment for the mortgage. And the best thing will be, the amount which will be paid in installments to the owners is exempted from income tax.
8. Standard deduction from the pension income.
It is allowed to senior citizens to have a standard deduction of Rs.40,000/- on their pension income in the financial year.
7. No tax under the Reverse Mortgage Scheme
A senior citizen may reverse mortgage any of his accommodation to make monthly earnings. The ownership of the property remains with the senior citizen and they are given monthly payments for it. The amount paid in installments to the owner is exempted from Income Tax.
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8. Standard Deductions from Pension Income
The senior citizens are allowed a standard deduction of Rs.40,000/- on account of their pension income.