Many tax provisions are linked to age.  Whenever there’s a birthday in the family, you may want to check for changes to take into account as you do your tax planning. Major age milestones include the following:

Age       Tax Implications

Age 13    Your child no longer qualifies for the child care credit.

Age 17    Your child no longer qualifies for the child tax credit (different from the child care credit, above).

Age 18    Your child’s Coverdell education savings account is not permitted to accept new contributions (except in the case of special needs beneficiaries).

Age 18    You must pay social security taxes for any of your children that you employ in an unincorporated business.

Age 19    Is your child a full-time student? Unless you answer “yes,” you could lose the dependency deduction once your child reaches this age.

Age 24    None of your child’s investment income will be taxed at your rate under the “kiddie tax” rules.

Age 30    Any amount remaining in your child’s Coverdell education savings account must be distributed or rolled over to an education savings account for another qualifying family member.

Age 59½ You may start withdrawing money from your IRA, 401(k), and other retirement plans without penalty.

Age 62    This is the earliest age you can start pulling from Social Secuirity benefits.  This is an opportune time to strategize on how to maximize benefits before committing to a time frame for withdrawal.

Age 65    You generally qualify for a higher standard deduction.

Age 65     Low-income seniors may qualify for a special tax credit.

Age 65     Seniors qualify for Medicare at age 65.  Consult with Medicare before reaching this milestone.

Age 70½          You must start withdrawing at least a required minimum amount from your IRA each year to avoid a stiff penalty. (This requirement does not apply to Roth IRAs.)