1. Take a Senior Citizen Deduction

The IRS allows those age 65 and over to take an additional deduction worth$1,350 for single filers or $2,100 for a married couple. This also appliesto individuals who do not itemize their deductions because it is added totheir standard deduction.

2. Claim Stock Losses Now

Those seniors with stock losses should consider taking them beforeyear-end. Losses are used to offset any stock gains, including gaindistributions from mutual funds. In addition to offsetting gains, seniorscan claim up to $3,000 in losses per year to effectively reduce taxableincome for 2008. Any losses in excess of that amount are carried forward tofuture returns.

3. Seniors Seeking Cash Should Consider a Reverse Mortgage

Income earned from a reverse mortgage is tax free, meaning that seniors inneed of cash can unlock the equity in their homes as a lump sum payment in2008 with no tax implications. A reverse mortgage remains a viablefinancial tool for those 62 and older because it does not take into accountcredit history or a borrower's current financial situation.

4. Pay Outstanding Medical Bills Now

An individual with either a low taxable income or large medical expensesshould consider paying all outstanding medical bills before the end of theyear as an additional deduction. This would include supplemental healthinsurance, doctor bills, hospital bills and prescription drugs. Eligibledeductions also include medical mileage, the number of miles traveled toand from the doctor, pharmacy, or hospital.

5. Be Aware of Social Security Income Threshold

Those senior citizens who continue to work while drawing social securityshould be aware of mandated income thresholds. If income exceeds $25,000for one person or $32,000 for a married couple, then social security beginsto be counted as taxable income. This can be a large burden on seniorcitizens. If a senior is close to these income limits, they should considerpushing some income into next year to protect all of their social securityfrom income taxes.

6. Understand IRS Rules for IRAs

The IRS requires taxpayers to begin withdrawing funds from their IRAs inthe year after the year they turn 70 and one half. In that instance,seniors would then be obligated to take two withdrawals to include thecurrent year, potentially entering them into a higher tax bracket. In mostcases then, seniors should plan ahead and begin withdrawals in the yearthat they actually turn 70 and one half to avoid this scenario.

"Senior citizens are being squeezed like never before and need to takeadvantage of any savings available to them," said Eric Bachman, founder andCEO of Golden Gateway Financial, a comprehensive online financial resourcefor seniors and retirees. "With a few savvy moves, senior citizens can savethemselves hundreds or even thousands of dollars in income taxes."

"Older Americans need to be aware of the benefits made available to them bythe IRS," said Duhe, a certified public accountant and principal of JeanneS. Duhe, LLC. "These are effective ways to save money in order to extendexisting budgets even further."

For more tips or to find information about Golden Gateway Financial'sindustry leading suite of online retirement assessment tools and resources,please visit www.goldengateway.com. Golden Gate Financial encourages seniorcitizens to always seek personalized advice from qualified professionalsregarding their financial situation.

About Golden Gateway Financial

Golden Gateway Financial, located in Oakland, California, is acomprehensive resource for senior citizens, baby boomers and soon-to-beretirees to assess their financial health at retirement. Golden Gatewayhelps clients reduce money concerns and live better during what should bethe best years of their lives. The company's recognized resources, onlinetools, and award winning calculators make it the intelligent choice forseniors and their families who want unbiased and clear communication,comparison shopping for a reverse mortgage or life settlement, and relatedservices to help enjoy retirement. www.goldengateway.com

Add to Digg Bookmark with del.icio.us Add to Newsvine

Press Contact:Michael AzzanoCosmo PR for Golden Gateway Financial415.596.1978Email Contact