Taxes might be something that you don’t pay much attention to when caring for an aging loved one. Preparation of tax becomes a single stressful duty for the family caregivers to take on. It is not something unusual, and we get that. Fortunately, the Tax Cuts and Jobs Act (TCJA) of 2018 doubled the regular deductions for every individual. The regular deduction seniors (65 years and above) can now claim before claiming the bonus deduction is much better than before.
In simple words, seniors (and their caregivers) are pretty happy with their current income tax returns. With all that in mind, in this post, we have put together some significant income tax preparation and filing tips to help you, as a senior member, flow smoothly through the tax season.
Here are the tax preparation tips by Brian C Jensen-
You should know your entitlement
Individuals aged 65 years and above can avail of tax perks that can be surprising and, at times, even easy to completely ignore. For example, if you do not itemize all your deductions, you might be eligible for a ‘higher than the average amount of your regular senior deduction. This amount further gets increased if any of you (as the couple) is blind. Another benefit that a senior member can easily miss is the “Care for the Elderly” credit amount. This credit is applicable (strictly) if either of the couples is disabled. The amount that you can receive depends on the person’s age, filing status, and income. Credits are always welcome as long as you deserve them and are legal, says Brian C Jensen.
Stay away from scammers
Scammers are everywhere, and they are always up to take advantage of any situation, and seniors are the most vulnerable group. You always need to realize that neither the IRS nor its related agencies would ever make unsolicited contacts with you to seek your personal information.
If you ever receive a call that sounds like a scam, follow these helpful tips —
- Hang up the call right away and never entertain such calls
- Never provide them any kind of personal information irrespective of whoever the person is claiming to be
- Never purchase a gift card and provide them its code to pay for the claimed dues.
- Never wire any amount of money over your phone.
- Be cautious of your social security.
According to Brian C Jensen, finding out the correct taxable amount of the Social Security perk is complicated and a complete nightmare. If you are doing tax preparations of your own, fulfill the Social Security benefits worksheet very carefully. You can also ask for it so that you can cross-check and omit the errors.
Keep these points in mind and take help from a professional who can minimize conflict of interest along with taking care of your tax transactions.