Taxes must be thought about year-round. Tax season is stressful for everyone, but it can be particularly taxing for the older generation. The good news is that taxes can be easily navigated with a little bit of preparation. Here are a few tips to keep in mind as you approach your taxes as a senior citizen.
Know What You Are Entitled To
There are certain tax benefits that are available to individuals who are 65 years of age and older. Unfortunately, many people actually miss these benefits because they do not know that they exist. For example, if you opt to not itemize your deductions, you could end up getting a higher than usual deduction. There is also a Care for the Elderly or Disabled credit that applies for individuals if they are disabled. The credit also applies if their spouse is disabled. The amount of the credit will be based on filing status, age, and income.
Then, of course, there are medical expense deductions. Many senior citizens do not realize that there is a deduction for this because they cannot deduct basic health costs like a health club membership or vitamin expenses. However, it is possible to deduct prescription drug costs, fees paid to visit the doctor, health insurance premiums, and more.
Take Care With Social Security Benefits
Once you turn 62 years of age, you can apply for and start receiving Social Security benefits. However, depending on how well you are with numbers and taxes, it could be a literal nightmare to try to determine the taxable amount of your own Social Security benefits. You will want to fill out the benefits worksheet very thoroughly and carefully if you are doing your own taxes. You will want to double- and triple-check your numbers to ensure that they are accurate. Now, that can be a lot to take in, which is where the next tip comes in.
Hire Someone to Prepare Your Taxes for You
Preparing your own taxes can be incredibly overwhelming because there is so much information that has to be taken into consideration to ensure that you get the deductions and credits that you deserve and that you do not mess up the paperwork in the process. This is why seniors should consider hiring a professional to assist in the tax preparation and filing process.
If you are uncertain about anything regarding your preparation or filing of your taxes, contact a tax preparation service, such as Hough & Co CPA.