So, you’ve joined AARP for its great benefits, but you’re now wondering, “Can I deduct AARP dues on taxes?” You’re not alone! AARP offers discounts, expert advice, and exclusive resources. But, figuring out if you can deduct AARP membership fees at tax time is key.
Let’s explore this topic and answer the big question about AARP dues and taxes.
Key Takeaways
- Membership payments above $75 may be considered charitable contributions if the benefits received are of negligible value.
- The IRS allows charities to exclude certain negligible benefits from the tax return, keeping your taxable amount lower.
- Membership dues for charitable organizations are deductible if the contribution’s monetary value exceeds the benefits received in exchange.
- Professional organization memberships that provide more benefits than what you pay for are also tax-deductible.
- Most medical expenses and certain services not covered by Medicare may be tax-deductible for AARP members.
Understanding AARP Membership Fees
Joining AARP is a smart choice. The AARP membership fee is less than $20 a year. It’s a small price for the big benefits you get.
AARP gives you more than a card. You get discounts and perks. For example, you can get 10% off at Carrabba’s Italian Grill or save up to 10% on hotels with AARP Travel.
AARP isn’t just about discounts. It also offers free tax help through Tax-Aide for those with low to moderate incomes. This can be a big help during tax season.
If you love tech and staying connected, AARP has you covered. Members can get unlimited talk, text, and data for $55 a month with Consumer Cellular. Plus, you can earn a $100 cash back bonus with the AARP Travel Rewards Mastercard from Barclays.
AARP also cares about your health and well-being. They offer dental insurance plans for you and your family. Plus, tax-free withdrawals from Health Savings Accounts (HSAs) can help with health care costs.
In short, AARP membership fees are more than just an annual cost. They’re an investment in savings and support. This can help with tax questions, financial benefits, and everyday discounts.
Are AARP Dues Tax Deductible?
Many people wonder, “Are AARP dues tax deductible?” It’s important to look at the rules and exceptions closely. We’ll explore how these rules might affect your taxes.
IRS Rules on Membership Fees
The IRS has rules for membership fees. AARP, being a 501(c)(4) social welfare group, doesn’t allow its dues to be deducted from taxes. But, AARP can do lobbying and still keep its tax-free status. This makes things a bit tricky.
Some jobs let you deduct fees for professional groups or trade associations. But AARP isn’t for professionals, so its dues aren’t deductible.
Exceptions and Special Cases
Are there any exceptions for AARP dues being deductible? Yes, if your AARP membership gives you big business benefits, you might deduct the fees. This is rare, but it happens.
It’s also key to know that AARP’s political actions are tracked and taxed. But, regular membership fees aren’t deductible. Donations to charity or public welfare can be, if they’re more than the benefits you get.
This process might seem complex, but it helps protect your taxes. Figuring out if you can deduct AARP dues might need a tax expert. This ensures you follow IRS rules and get any tax benefits you can.
Other Tax Benefits for AARP Members
Being an AARP member can really help you out during tax season. You can get tax benefits for AARP members that go beyond just deductions on membership dues. These benefits can help you make the most of your tax return.
AARP Foundation Tax-Aide
The AARP Foundation Tax-Aide is a big help. It offers free tax help to those with low to moderate income, especially seniors. This service makes sure you get all the tax credits and deductions you’re due.
If you’re dealing with complicated tax issues or just need some advice, this is the place to go. Using this program can save you money on tax prep and increase your cash for important things.
Additional Tax Credits and Deductions
AARP membership also gives you access to more tax benefits for AARP members. For the 2018 taxes, you can deduct medical expenses over 7.5% of your income. This goes up to 10% the next year.
Things like out-of-pocket health costs, including copays and travel to doctor’s visits, are deductible. You can also deduct home changes for medical needs, like grab bars or ramps.
Health expenses like acupuncture and hearing aids are also deductible. Even doctor-recommended weight loss programs and certain diets can be deducted if you have a disease.
Not all cosmetic surgeries or over-the-counter drugs qualify, but there are many other eligible expenses. The AARP Dental Insurance Plan by Delta Dental also covers dental care for individuals and families.
Seniors 65 and older get their monthly fees waived, and those under 65 get a 20% discount. If you have a high-deductible health plan, you can save on medical expenses through Optum Financial’s services.
Conclusion
Figuring out if AARP dues are tax deductible is complex. The answer varies for everyone. AARP membership fees aren’t usually deductible by IRS rules. But, it’s key to understand what affects your situation. Always talk to a tax expert about your own case.
AARP also offers tax benefits, like the AARP Foundation Tax-Aide service for free tax help. As a member, you might get tax credits or deductions. These could be for health savings accounts or IRA contributions. These aren’t from AARP dues, but they can help with your taxes.
Knowing about these benefits can really help your finances. If you’re asking “are AARP dues tax deductible?” or looking for more deductions, learn as much as you can. If unsure, talking to a tax expert can help you use all the benefits you can.
