Age isn’t the only factor that makes tax logistics difficult to manage. Read how you can tackle taxes for seniors.
Taxes are confusing for everyone. Property tax, social security, tax returns, tax credit, property tax exemption… the very thought of tax itself is taxing on the brain. But as with many of life’s little annoyances for taxpayers, minor tax confusion can become incrementally more difficult to understand and manage as we age. Age isn’t the only factor that makes tax logistics so difficult for many seniors to manage. Changing technology, complex rules, and a lack of sufficient funds to hire a professional accountant or tax preparer can make even common tax issues seem like insurmountable problems. Luckily, seniors who find themselves in this situation aren’t alone and they aren’t helpless, either. Learn more about low-cost or cost-free tax help services for seniors and how you can take steps to protect your elder loved ones from tax scams.
When you have a problem, it’s often best to go to the source to seek a solution. That’s true of the IRS, which offers two great programs that seniors can use:
There are VITA and TCE support centers and programs located throughout the United States. By visiting the IRS website at https://www.irs.gov/ you can do a location-based search that makes it easy to find the closest VITA or TCE program near you. Below are details about each of the programs, to help you decide which service best fits the needs of the individual in question. Setting up an appointment for tax counseling through either or both of these IRS a-sistance services is possible. Depending on the program and the specific rules that are in place at the time, you might not be able to actually set up the appointment for the someone else due to the confidentiality rules that govern the IRS. However, there may be some circumstances in which these rules are waived, particularly if the senior you’re helping isn’t able to properly communicate on their own.
VITA volunteers are fully credentialed and IRS-certified tax professionals who give their time to help seniors, people who fall below a certain income level, disabled people and those who are not fluent in English. The IRS Volunteer Tax A-sistance (VITA) program is best suited for seniors who still earn some sort of income that is subject to income tax. VITA a great option for seniors who have limited English-language skills but still work or for those seniors who earn an income that falls at or below the line established by VITA, which changes over time. VITA may provide services for seniors who earn an income higher than this level, but these individuals may want to pay for professional services instead. While VITA volunteers do work hard and provide high-quality services and the program offers a cost-free way for low-income seniors and others to have their income tax returns prepared and e-filed by a professional. VITA volunteers can also provide counsel on applicable tax credits to reduce the overall income tax burden. However, there are limits on what VITA volunteers can and cannot prepare. Tax forms such as a Schedule C showing losses, for example, will need to be prepared by a paid professional. The IRS recommends that individuals with complex tax situations consult a paid professional rather than working with VITA volunteers.
Seniors who aren’t sure which service to use can try the TCE first since this service is specifically intended for use by senior citizens. As of 2017, seniors need to be 60 years old to qualify for TCE a-sistance. Fixed-income living is the reality for many seniors and these people should consult the Tax Counseling for the Elderly (TCE) rather than VITA, which deals specifically with income tax. TCE is also a free service operated by volunteer IRS-certified tax professionals, but the issues it handles is more relevant for seniors who no longer work, such as pensions and retirement income.
It's not just famous people who have to think about choices.
