Florida is one of the most popular states for retirement. Older people move from all over the country to enjoy the nice weather and friendly culture. However, those aren’t the only reasons seniors find Florida so attractive. The state also offers an array of tax incentives for seniors.
With significant tax savings, seniors can enjoy a more comfortable retirement. It can also help you stretch your retirement savings further.
Read on to learn more about the tax incentives that make Florida such a great place for seniors.
The Top Tax Incentives for Seniors in Florida
Florida is a tax-friendly state, especially for seniors. The state does not collect personal income tax. That includes not taxing Social Security benefits. It also means a pension or other forms of retirement income may not be subject to income tax.
The state also offers an array of tax benefits for seniors. In the rest of this post, we will explore some of these benefits.
Property Tax Exemption for Senior Citizens
The most common property tax exemption is the Homestead Exemption. This exemption decreases the taxable value of your home by as much as $50,000. However, seniors can get an additional exemption of $50,000 if they meet certain requirements. To qualify, seniors must meet these criteria:
- The individual must be 65 or older.
- The property must be the owner’s primary residence.
- The individual must not exceed the income limitations.
It is also important to note that not all local governments offer the additional exemption for seniors.
No Inheritance Tax
Florida does not charge an estate tax on inheritances. That means your heirs can receive more of your assets upon your passing. However, your estate may still be subject to federal estate taxes. That’s why seniors may still need to take various estate planning measures. With sound estate planning, seniors can help their heirs simplify or avoid the probate process. It may also reduce their federal estate tax burden.
Consulting a Tax Expert
Applying for tax benefits can be a long and complex process. Seniors should consult an attorney or tax expert to explain various tax breaks. With professional advice, you can ensure you get the most from the available tax incentives. It can also safeguard you against making costly mistakes.
Do you need help with elder law issues in Florida? Click here to contact Scott Law Offices. We are dedicated legal advocates for older Americans. Reach out now to learn more about how we can help.
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