Estate tax on an inherited IRA
This is not as easy as deducting medical expenses or charitable contributions, but is worth checking out. If you inherited an IRA, you could take an deduction for the federal estate tax paid on IRA income.
Of course, you may know to estimate the value of items you donate to charity. But you also can include other out-of-pocket costs related to volunteering. If you bought ingredients to make meals for the homeless or elderly, or if you drove a personal vehicle while volunteering or assisting a charity, those and other costs can be deducted. If you are not comfortable preparing your return, or have questions, there are several AARP Tax Counseling for the Elderly sites to help you.
The Schoharie County Office for the Aging is partnering with AARP to provide free tax assistance. Tax prep will be done on Mondays and Thursdays through April. Appointments are necessary as there are some limited returns we cannot prepare. Please call (518) 295-2001 for question or an appointment.
Nancy Dingee is director of the Schoharie County Office for the Aging. ‘Senior Scene’ columns can be found at www.thedailystar.com/seniorscene.