Understanding and precisely handling tax preparation becomes more important as we age. Seniors can take advantage of the numerous tax deductions and credits available to them. This Senior Helpers blog post offers a guide on tax deductions and credits and tips on choosing a reputable tax prep service that caters specifically to the needs of seniors. Always consult a tax professional or advisor before making decisions based on your tax situation. The information provided in this post is intended as a general guide and may not apply to your specific circumstances.
Tax Deductions and Credits for Seniors
Tax preparation begins with a clear understanding of what deductions and credits entail. In essence, tax deductions reduce the amount of income you are taxed on, while tax credits reduce the amount of tax you owe. Being aware of these deductions and credits is essential for efficient tax preparation. Seniors should know several of these are tailored specifically for them. They include the Credit for the Elderly or the Disabled, medical and dental expense deductions, and higher standard deductions for those above 65.
How to Find Reputable Tax Prep Services
Choosing a reputable tax prep service can make a world of difference in the tax preparation process. Here are some things to look for:
Look for Experience
With many services available, it is smart to select a reliable tax preparer with a proven track record of excellence. Looking for a preparer's work history or reputation can be as simple as checking with the Better Business Bureau online.
Check Credentials
You want to make sure the tax preparer is registered with the IRS and ascertain their qualifications and credentials. The IRS directory is a good place to start. It lists the professional credentials and certifications of your local tax preparers.
Be Aware of Fees
It is always a good idea to scrutinize any fees involved. You want to ensure they align with the complexity of your tax situation. Many tax preparers charge a minimum fee and add costs depending on the required forms or schedules for your return.
Seek Out Senior-Friendly Services
Seniors should also consider tax prep services that cater specifically to their needs. These services are typically familiar with the deductions and credits available to seniors and can provide a comprehensive, stress-free preparation experience.
Caregiving Expenses and Taxes
Caregiving expenses can significantly affect a senior's tax situation. These costs are often associated with the daily activities essential for living but may be challenging for seniors to perform. In-home care can include help with personal care, meal preparation, housekeeping, or transportation to doctor's appointments. The IRS allows deductions for certain medical expenses if they exceed 7.5% of your adjusted gross income. Some of these costs may be tax-deductible if you hire in-home care for medical reasons. Knowing how these expenses impact your taxes is important, as it can save you a significant sum.
Get Assistance in Locating Trustworthy Tax Preparation Services
Senior Helpers provides comprehensive, in-home senior care services designed to meet the unique needs of our community's seniors and their families. If you live in the Ellicott City, Westminster, Sykesville, or Mount Airy areas, don't hesitate to contact us anytime at Senior Helpers Westminster. We are happy to help you find a local tax prep service provider to ensure the comfort and peace of mind you deserve.