One tax break seniors specifically get is a higher standard deduction. So, if you are single your standard deduction is $15,350 instead of $13,850.
Also, if you are collecting social security, your benefits are not fully taxable.
If you fall into the following, 85% of your social security is taxable income
- Single with income above $34,000
- Married Filing Jointly with income above $44,000
- Married Filing Separate regardless of income
If you fall into the following, 50% of your social security is taxable income
- Single with combined income between $25,000-$34,000
- Married Filing Jointly with combined income between $32,000 and $44,000
Your combined income is calculated by adding your
- AGI plus
- Nontaxable Interest plus
- 1/2 of your social security Benefits
Social Security Benefits Taxes
Since your cleaning business income was only $12,000, depending on how much you received in Social Security Benefits, you may not be paying any federal income tax. It may be Self-Employment taxes you are seeing which is 15.3% of your business income. There is no break for SE taxes.
Also, depending on if you have any taxable income and how high your medical expenses are, itemizing your return may result in a better tax situation for you. Medical expenses are only deductible for the amount in excess of 7.5% of your AGI. So, if your AGI is $100,000, only your medical expenses over $7,500 will count towards your Itemized Deductions. But, Itemized deductions include mortgage interest, State and Local taxes and charitable donations.
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