Age does matter, when it comes to tax obligations
One of the elements that makes our federal tax code so hard to follow is that different laws for taxes apply to you based on your age or your dependents. To help you navigate through some of this maze, here is a chart that outlines key ages and how they apply to your tax obligation.
How age impacts your taxes
| Age | Tax Code | Impact |
| 0+ one | New Birth | Creates a new dependent |
| 13 | Dependent Care Credit | This credit is gone for those aged 13 |
| 17 | Child Tax Credit | This popular $2,000 per child credit is no longer available for those age 17 or over |
| 19 | Earned Income Credit and Education Credits | These credits disappear when your qualified dependent or taxpayer is 19 or older (but also see age 24) |
| 24 | See age 19 limits | If your qualified taxpayer is 19 or older, but still a qualified student, the extended age limit becomes under age 24 |
| 50+ | Qualified Retirement Account Catch-Up Contributions | You may add to your annual contribution to IRAs, 401(k)s, 403(b)s, SEP IRAs, SIMPLE IRAs, and others through this catch-up provision |
| 55+ | Health Savings Accounts Catch-Up | Donate additional funds to your HSA using a catch-up provision |
| 59 1/2 | Retirement Accounts | Begin withdrawals from qualified retirement accounts without a pre-payment penalty |
| 62+ | Social Security Begins | Social Security retirement benefits may begin depending on your date of birth |
| 70 | Social Security Maximized | The age at which Social Security retirement benefits are maximized if you delay starting Social Security benefits |
| 73 | Qualified Retirement Account Distributions | Minimum distributions are required from select retirement accounts like Traditional IRAs, 401(k)s, SEP IRAs, SIMPLE IRAs, and more |
These age triggers outline some of the significant tax events that occur at various ages. In most cases, the impacted year is the year you turn the age on this chart. For example, if your qualified dependent turns 17 any time during the year, they no longer qualify for the Child Tax Credit. This chart is not all-inclusive, and there are exceptions to some of these age qualifications. Use this information to know when to ask for help.
Tax planning and preparation
When you or anyone in your family approaches any of the ages in this chart, it’s a sure sign you need to spend some time understanding the tax implications of the age event. Contact our RRBB advisors if this impacts you!
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