Tax time can be stressful for seniors. Staying abreast of U.S. tax changes, monitoring credits and exemptions, and understanding the impact of Medicare updates on tax liabilities is challenging. Nashville, TN, senior care providers share a few tips on making tax season easier for seniors.
Understand the Basics
Seniors should have a basic understanding of the filing process and obligations. While social security income isn’t normally taxed, aging adults need to know about any exceptions to the rule. Any income received apart from social security will necessitate a tax return, even if this income isn’t taxable.
Watch Out for Scams
Aging adults are vulnerable to financial scams, and tax season is an active time for scammers to take advantage of this demographic. Encourage your elderly relative to upgrade to a secure mailbox and keep documents with personally identifiable information safe. Advise your loved one to be firm with unidentified callers offering tax assistance and requiring personal details. You can also encourage your loved one to apply for an IRS Identity Protection PIN. This six-digit number ensures no unauthorized person can use his or her social Security number to submit a fraudulent tax return.
One of the best things you can do for your elderly relative is to identify local and online resources. The IRS has a dedicated website for retirees and seniors. The AARP Foundation also offers free tax assistance through different online resources.
Encourage Working with a Tax Expert
Many aging adults assume filing their own taxes will be much easier once they’ve exited the workforce. However, they may be eligible for special tax credits they aren’t aware of. It can also be difficult for seniors to account for all taxable assets, particularly when they maintain diverse retirement portfolios. Getting help from a seasoned tax expert may be essential for preventing unpleasant surprises and ensuring all applicable deductions have been claimed.
Tax management for seniors can require time and effort. As a family caregiver, you can rely on Home Care Assistance to look after your aging loved one while you tend to other important matters. Our live-in caregivers in Nashville, TN, assist seniors in their daily activities and can provide social stimulation activities to boost their health and wellbeing. Call one of our friendly Care Managers at (615) 326-9849 and create a customized care plan for your senior loved one today.