When it comes to retirement, most seniors want to choose a place where they can stretch their dollars as far as possible. While living on your own in a private residence may be desirable now, rising healthcare costs and inflation can make future costs unpredictable – even if you own your home outright. Besides utility costs and real estate taxes, homeownership also means maintenance costs and the headaches that come with keeping up a home.
The hassle of homeownership in retirement is one of the many reasons why retirees choose to move into a Life Plan Community like Rolling Green Village in Greenville, SC. While the hassle-free lifestyle and peace of mind are certainly perks, there are also potential tax benefits that come from moving into our maintenance-free, vibrant and active community.
How can South Carolina retirement taxes benefit you?
When it comes to maximizing your taxable income, South Carolina is a great place to live. The cost of living is below the national average, meaning your dollars can go further. But there are additional benefits for seniors that make the Palmetto state a very desirable place for retirees to live.
- Social security benefits are not taxed by the state, so your retirement income goes even further.
- South Carolina seniors ages 65 and older do not need to file a state income tax return. However, if you were to file a state income tax return, individuals over 65 can claim a $15,000 retirement income deduction – a benefit if you earn income during retirement from IRAs, pensions, and other sources.
- Sales tax in South Carolina is 6%, which makes it one of the more affordable states in the U.S.
- South Carolina offers some of the lowest property tax rates in the nation and offers a generous $50,000 homestead exemption.
What is a Life Plan Community?
Rolling Green Village is a Life Plan Community, a type of senior living lifestyle that is also known as a Continuing Care Retirement Community (CCRC). These types of senior living communities offer a full range of healthcare and lifestyle options on the same campus. Generally, seniors join the community as independent living residents and have the option to access higher levels of care if and when they are required.
Many of our residents choose to move to our Life Plan Community to enjoy peace of mind and control of their golden years. It’s comforting to know that, no matter how your health needs may change in the future, you’ll receive lifelong access to excellent medical care in the community you have come to love.
On the financial side of things, a Life Plan Community can help to lower future medical expenses as well as potentially offer tax benefits that can save you and your estate money now and in the future.
What sort of contracts are available at Life Plan Communities?
Life Plan Communities usually offer one of three contract options to their residents. Type A Life Care and Type B Modified Plan contracts require substantial entrance fees in addition to a regular monthly fee.
Rolling Green Village offers a Type C contract, also known as a Fee-for-Service contract. While we do have an entrance fee, our residents only pay for the care they need, when they need it. The advantage of this type of contract is that your entrance fee is lower than a Type A or B community, but you are guaranteed to receive care in the community you’ve come to love. You don’t need to move somewhere else. Also, our status as a not-for-profit community means we are solely focused on providing the best lifestyle possible to our residents – not providing a high profit margin for shareholders.
What Federal Income Tax Deductions Can Retirees Benefit From?
It’s never too soon to start thinking about how you can maximize your tax benefits for the next year. When you move into a Life Plan Community like Rolling Green Village, a percentage of your entrance fee can possibly be deducted from your taxes. This is because, according to the IRS, the entrance fee is a “prepayment” of future medical expenses. In 2022, qualifying medical expenses that add up to more than 7.5% of your adjusted gross income can be itemized for your taxes.
At the same time, a percentage of your monthly fees moving forward may be tax deductible as well. Additional medical costs like prescription drugs, doctor bills, hospital bills, health insurance premiums, and other medically related costs can potentially be itemized, further reducing your tax liability now and in the future. However, it’s very important to speak with your personal tax advisor for specific information regarding taxes to find what’s best for your specific situation.
If you’ve been thinking of making a move to benefit your retirement lifestyle, choosing Rolling Green Village as your future home can be a great financial step. Our active, friendly retirement community is filled with vibrant older adults who are enjoying life on their terms and have peace of mind for the future, knowing that all their future healthcare needs can and will be met at the place they’ve come to call home.
Enjoy the retirement you deserve at Rolling Green Village.
At our Life Plan Community in Greenville, South Carolina, residents live life on their own terms with financial benefits and the reassurance of future healthcare services. Discover a well-rounded, independent lifestyle with every amenity and service you could ever need for worry-free living, today.