As a senior, there are several special circumstances that can affect your taxes and make them more confusing than they already are. This guide will provide information on specific tax benefits for seniors and steps you can take to help simplify preparing your finances for the 2023 tax season.
Specific Tax Benefits For Seniors
Tax-paying seniors have access to some advantages that can make filing easier. In certain cases, age 65 or older citizens may qualify for additional standard deductions. They may also be exempt from requirements such as Social Security withholding or estimated tax payments. Additionally, people over the age of 70 ½ who receive certain types of retirement income may choose to direct part of it toward charity without having to declare it as taxable income.
Gather Necessary Documents
To make preparing your taxes easier and less stressful, start collecting the necessary documents early on in order to comply with filing deadlines and avoid potential penalties. Some of this paperwork includes:
Tax Returns From Previous Years
It's important to keep a copy of all tax returns from the previous seven years. This can help you avoid making mistakes and double deductions by misfiling documents or missing out on deductible credits.
W-2 Forms
Any salaries or wages earned through employment in the past year are reported on a W-2 Form and must be included in your tax filing.
1099 Forms
Various other types of income are also reported on 1099 Forms and must be accurately declared. These include wages from contract work, freelance, or self-employment labor. Other income reported on this form includes all interest, dividends, rent received, and government payments such as Social Security.
Social Security Statements
If you have received Social Security benefits in the past year, a statement will be sent out towards the end of January. If you do not receive one by mid-February contact the Social Security Administration to request it.
Investment Information
For income generated through investments, make sure to take note of any gains and losses as well as taxes withheld. All these amounts need to be reported on your tax return.
The Importance Of Staying Organized While Preparing Your Taxes
When preparing your taxes, it's important to stay organized. Keep a folder nearby where you can directly place all relevant documents into one location. Additionally, make sure that any personal information such as names, addresses, and social security numbers are correct for every form filled out. An incorrect number on a filing could result in delayed refunds or the return being rejected by the IRS. There is always a small chance that the IRS could audit your tax return. If you stay organized, you should be able to easily face an audit.
Senior Helpers Kansas City North Can Help With Daily Activities
By understanding the specific tax benefits available to seniors and proactively planning for the upcoming tax season, you can ensure that filing is done accurately with minimal stress in Gladstone, Kansas City, and Liberty. With this guide in hand, you have valuable information that will help make it through 2023's tax season pain-free. While we don't do taxes, Senior Helpers Kansas City North can help you keep your home organized and provide help with other tasks. Contact us today to learn more!