Tax season can be a stressful time for anyone, but it can be particularly daunting for seniors who may have complex financial situations or unfamiliar tax laws to navigate. To ease the burden and ensure seniors make the most of available resources, here are some essential tax season tips tailored specifically to senior finances:
Tax Deductions and Credits for Seniors
Understanding tax deductions and credits is key to reducing tax liability. These concessions often change, making staying updated all the more important. Seniors can leverage a higher standard deduction that increases further if one is blind or over 65.
Certain medical and dental expenses exceeding 7.5% of adjusted gross income can also be deductible, so keep your receipts. Seniors may qualify for tax credits such as the Credit for the Elderly or the Disabled.
Organizing Documents for Efficiency
A fundamental step in hassle-free tax filing is organizing your documents well. By maintaining a systematic record of all necessary documents, including income sources, medical expenses, investment data, and tax forms, you'll avoid the last-minute rush and possible misplacement of documents. A good system not only eases the filing process but also assists in identifying potential deductions and credits.
Protecting Elders From Tax Scams
Unfortunately, tax season brings with it scams that specifically target seniors. These scams, often sophisticated phishing schemes, can cause significant financial loss. It's important never to provide personal information to an unverified source, especially if they claim to be from the IRS.
Remember, the IRS will never initiate contact with taxpayers via email, text messages, or social media to request personal or financial information. If a senior falls victim to a scam, report it immediately to the local law enforcement and the IRS.
When to Seek Professional Help
Tax codes can be complex and continually evolving, which may make navigating senior finances daunting for some. If your tax situation involves multiple income sources, substantial medical expenses, or significant investment income, seeking professional assistance might be beneficial. Certified public accountants or enrolled agents with experience in senior tax issues can provide invaluable support and potentially uncover savings you might have overlooked.
Resources for Low-Income Seniors
For low-income seniors, there are programs like the IRS's Tax Counseling for the Elderly (TCE) or AARP's Tax Aide that provide free tax assistance. These programs are staffed by certified volunteers who are familiar with pension and retirement-related issues unique to seniors. They can help you prepare basic income tax returns and ensure you're taking advantage of all the deductions and credits available.
Senior Helpers Provides Immersive Senior Care Services
Navigating tax season can seem overwhelming, especially when managing senior finances. However, the process can be significantly simplified with a clear understanding of the deductions and credits available, a commitment to organizing documents, a vigilance against potential scams, and a willingness to seek help when needed.
If you're located in Lakewood, Toms River, Manchester Township, Brick, or anywhere else in Ocean County and need help managing senior finances, contact us at Senior Helpers Ocean County. Our team of experts is ready to provide you with the support you need through personalized senior care services.