The tax code isn’t just complicated; it also shifts depending on your age or the age of your dependents. From credits that benefit parents of young children, to penalties or perks for retirees, your age can have a surprising impact on what you owe—or what you might get back. To help you make sense of it all, we’ve created a chart that breaks down key age milestones and what they mean for your tax situation.
To help you make sense of how growing older impacts your taxes, just follow this outline! Here, we’re breaking down all of the key age milestones and outlining what they mean for your own tax situation.
Age 0:
Newborns are more than a bundle of joy—they also introduce tax benefits! As soon as a child is born, parents may be eligible for the Child Tax Credit, the Child and Dependent Care Credit, and the ability to file as Head of Household (if they meet the criteria).
Age 13:
Once a child turns 13, eligibility for the Child and Dependent Care Credit will usually go away. This means taxpayers can no longer claim certain expenses like daycare or after-school programs. The exception here is whether the dependent is disabled, in which case you might still be able to retain the credits.
Age 17:
The Child Tax Credit ends after age 16. Once your child turns 17, you may still qualify for the Credit for Other Dependents, but it offers a lower benefit than the standard Child Tax Credit.
Age 18:
At 18, a dependent may no longer qualify for certain tax benefits unless they’re still in school. For parents, this can mean a shift in how much they can claim in credits or deductions.
Age 19:
Unless the child is a full-time student, age 19 is typically the cutoff for being claimed as a dependent under the qualifying child rules.
Age 24:
This is the maximum age for claiming someone as a dependent under the “student” rules, assuming they’re a full-time student for at least five months of the year. After this point, even full-time students no longer qualify under the child category, though they may still qualify under other dependent criteria.
Age 26:
While this age is best known for being the cutoff for staying on a parent’s health insurance plan, it doesn’t directly affect your taxes. However, losing coverage can have tax implications if you don’t secure new insurance.
Age 50:
Starting at age 50, taxpayers can make catch-up contributions to retirement accounts like 401(k)s and IRAs. These higher limits can help boost retirement savings while lowering taxable income.
Age 59½:
This is a key age for retirement planning. Withdrawals from retirement accounts such as traditional IRAs and 401(k)s are no longer subject to the 10% early withdrawal penalty. However, income taxes may still apply.
Age 62:
This is the earliest age at which you can start receiving Social Security retirement benefits. Keep in mind that collecting early reduces your monthly benefit amount permanently.
Age 65:
Several tax advantages begin at 65. You may qualify for a higher standard deduction, and you could also be eligible for the Credit for the Elderly or Disabled if you meet income limits.
Age 73:
Required Minimum Distributions (RMDs) must begin from traditional IRAs and many retirement plans. These distributions are taxable and must be calculated annually to avoid penalties.
The Bottom Line for Age Milestones
These notes are a great starting point to learn more about aging out of certain benefits and claiming new ones, but it’s not the whole story. Tax laws are full of exceptions, and specific circumstances can change how age-based rules apply. Maybe you’re planning for your child’s education or gearing up your own retirement, every year is different! That’s why it’s always best to stay on top of your game and consult a professional. Our team is here to help you understand how age impacts your taxes—and how to make the most of every stage of life.
Frequently Asked Questions
Our clients appreciate our fair, transparent pricing — no surprise fees, no confusing invoices. Individual tax returns start at $750, and business returns start at $1,500. If you’d like to talk through your specific situation before committing, a one-hour consultation with a CPA and tax preparer is $250.
Every client’s needs are different, so these starting rates can vary based on the complexity of your return or the scope of services you need. Visit our pricing page for more detail.
If you need accounting, bookkeeping, or tax services, contact us today — we’d love to learn more about your situation and provide pricing tailored to your needs.
We work with a wide variety of individual and business clients across central Indiana. Our clients range from entrepreneurs and small business owners to business professionals, retired individuals, families, and business corporations of all sizes.
Whether you’re just starting a business, managing personal and family finances, planning for retirement, or running an established company, we tailor our accounting, tax, and advisory services to fit where you are and where you’re headed. No two clients are exactly alike, and neither is our approach — we take the time to understand your specific situation so we can offer advice that actually applies to you.
NSO and Company is located in Fishers, Indiana, just off I-69 near the intersection of Lantern Road and 96th Street — an easy, convenient drive from anywhere in the Indianapolis area. Our office is at 8950 Fitness Lane, Suite 100, Fishers, IN 46037.
We’re open Monday through Friday, 8 am – 4 pm, and welcome walk-ins as well as scheduled appointments. If you’d like to speak with someone directly, call us at 317-588-3131.
NSO and Company combines years of experience with personalized service to help individuals and businesses prepare their taxes accurately and on time. We take the time to understand your situation, answer your questions, and look for opportunities to help you maximize your tax savings, while staying compliant and making the process as smooth as possible. Our clients also value our fair pricing and the confidence that comes from working with a trusted local firm.
