If you’re a senior and are living on a fixed income, tax season may be a very hard time for you. Paying taxes is a necessary part of the world, however, it can cause a lot of frustration and concern for those living month to month or on a fixed income. It can often be difficult to find the money to pay your taxes at the end of the year, however there are many things you can do to help reduce the amount of money you owe. Here are some of the top ways to help you save money on your taxes:

1. Give money to family
When completing a senior’s tax return it is essential that you remember to ask them if they have given any money to members of their family. People are allowed to give ten thousand dollars each year to the members of their family. Even if a senior does not give this much, they are still allowed to deduct this amount from their income, which will reduce the amount that they owe in taxes. Most seniors give money for holidays and birthdays so remember to take this into consideration come tax time. If you don’t have a family to give money to, consider giving a yearly contribution to a charity organization.

2. Spousal IRA contributions
While you are allowed to contribute to your own IRA (or individual retirement account), you are also allowed to contribute to your spouse’s IRA. Make sure that you take full advantage of this tax deduction so that you can reduce the amount you owe. This contribution will also help you save in the long term for retirement of end of life care.

3. Deduct Medicare premiums
One of the best tax breaks for seniors is the ability to deduct medicare premiums. The amount that you spend on healthcare throughout the year can be deducted from your income. Whether you visit the doctor regularly or only go once a year, you can still deduct the amount you spent on healthcare. You should keep track of all the money you spend on items related to health. This includes prescriptions, doctor visits, pain management, and more. As you age, you are likely to spend more and more on health care so it is essential that you track all of this.

4. Increase in standard deduction
Once you hit the age of 65 your standard deduction increases to 1,650 dollars. This is a big difference and can help you owe less money to the government. Make sure your accountant is aware of your age and take this standard deduction into consideration. It could be the difference between you owing money and getting a small check back in the mail.

5. Avoid cashing out pensions early
While it may be enticing to cash out on your pension early, this is a terrible idea unless you are unable to live without the money. Seniors should try and do everything they can to avoid the pension payout trap. If you take your money out of your pension before the predetermined time, you may face serious financial dues. This can limit the amount of money you get and reduce your ability to live fully. Try your best to keep your money in your pension or your retirement accounts until they have fully matured. This will help you maximize your money and ensure that you are receiving the most money possible as you age and retire.