What Are the Tax Benefits of Living in Phoenix, Arizona?
When people retire, they want their new life to be as comfortable as possible, which is why many people plan for retirement years before. Many people who retire choose to move out of state to somewhere that better suits the lifestyle they want to lead.
There are many different items that go into choosing the best retirement state for you. People consider places like Arizona to retire because of the weather, but there are more benefits to living in Phoenix, Arizona, than you might think.
People are flocking to Arizona to retire because of the tax benefits that they can enjoy there. As you probably know, once you retire, you typically no longer earn money from your job, meaning you have to live off the money you’ve saved during your working years. In Arizona, you can enjoy multiple tax breaks while living in a senior living community such as BridgeWater Assisted Living, with countless amenities for your enjoyment. Here are some of the tax benefits you could enjoy while living in Phoenix, Arizona.
Age Exemptions
There are a few benefits that come with getting older. Depending on your age, you may be able to benefit greatly from the way Arizona taxes are set up. In this state, tax exemptions are given to the taxpayer or their spouse who is 65 years of age or older. This is convenient for many retirees, as they’re usually 60 years or older when they decide to retire. Because of this incentive, many people choose to retire in Arizona and continue living their days enjoying all that Arizona has to offer.
Assisted Living Benefits
If you’re planning on moving to Arizona to live in a thriving community like BridgeWater Assisted Living, you may be eligible for tax benefits. People over the age of 65 who haven’t otherwise claimed a dependent credit may still be eligible to receive one. This is the case if they either paid more than $800 for home health care or other medical costs in Arizona, or if they paid more than one-fourth of the cost of being in an Arizona nursing facility or assisted living community. BridgeWater Assisted Living is a community that you’ll be happy to call home, and doing so could give you access to valuable tax benefits.
Health Exemptions
There are some health conditions that Arizona will allow tax exemptions for. One of those health conditions is blindness. If you or your spouse is blind and wanting to live in Phoenix, Arizona, you will be eligible for tax exemptions. Seniors suffering from health conditions will find comfort at an Arizona senior living community that can accommodate their specific needs.
No Taxes on Social Security Benefits
Arizona is one of the many states that don’t tax income from Social Security payments. This is specific to Social Security retirement benefits received under Title II of the Social Security Act. With this tax benefit, your money can go further for you while you’re living in Phoenix, Arizona, and go toward your new living accommodations at a senior living community.