Sometimes the elderly are unable to take advantage of tax credits designed to benefit them. It might be because of the incompetence of tax preparers, unavailability of tax help or lack of information. If you are 65 years of age or older, you can get more spending money out of your retirement money by reducing your tax liability using tax credits and free help.
Tax Credit for the Elderly
If you and/or your spouse are 65 years old or older, you qualify for tax credits for the elderly. Using the standard deduction, you can save more on taxes if you qualify for the "Credit for the Elderly or Disabled" tax credit. Details about the qualifying factors for this credit include age, filing status, and income amount. To claim this credit, you can use Form 1040 or Form 1040A.
If you are 65 or older, and either you or your spouse is blind, you can receive a higher standard deduction. To calculate the amount of credit and the taxable amount of your Social Security, you can seek help from tax professionals.
Free Tax Filing Help by the IRS
You do not necessarily need to hire a tax preparer to prepare your tax return if you cannot afford the service. The IRS provides Tax Counseling for the Elderly (TCE) and Volunteer Income Tax Assistance (VITA) at various local sites. You can use the AARP Site Locator Tool to locate the nearest tax help site or call 888-227-7669.
If you are 60 years old or older, you should seek help from TCE because this tax assistance is specifically designed for the elderly and provides additional help for questions related to retirement, pensions, etc.
VITA offers general tax help mostly to those who cannot afford professional tax help. They provide taxpayers with $51,000 or less income with assistance. Get the benefit of all tax credits you qualify for this year, and reduce your taxes.
Labels: Back Taxes, IRS, Tax Credit, Tax Filing, Tax News, Taxpayers