Tax time is almost here again, so it's time to get everything ready. Getting an early start can simplify the process, and it's easy to get a jump-start on your taxes. Just follow these tips to ensure you're set for tax season.
Every year, the IRS issues new guidance for taxes, and laws change all the time. For the 2022 tax year, some of the major changes include:
Once you've brushed up on tax changes for the year, it's time to determine how you'll have your taxes prepared. If you prefer to do them yourself and have an adjusted gross income of $73,000 or less, you may be able to use Free File, a guided tax preparation service available through IRS.gov that's completely free.
Seniors with a higher level of income may wish to consider other tax preparation programs such as TurboTax or TaxAct. These programs ask you a series of questions and then perform all the calculations for you.
For those who struggle with tax preparation, there are other options available, such as:
As a part of our services and amenities for residents, Bethesda Gardens senior living community in Arlington can provide free transportation to scheduled appointments with your tax preparer.
Whether you're going to prepare your taxes yourself or have someone do them for you, you'll need access to your financial information. Start a file that includes:
Speaking of contributions, did you know you can make deductible contributions to IRA accounts for 2022 up until April 18, 2023? If you're eligible, making contributions now could lower your taxes. You also have until December 31, 2022, to make additional contributions to a 529 Plan to save for your children's or grandchildren's college education.
If you're going to prepare your taxes yourself, calculate the taxable amount of your Social Security benefits with care. If you receive Form SSA-1099, use the Social Security benefits worksheet to calculate the amount. You can obtain one from the IRS website. Consider printing out two copies in case you make any errors or wish to start over.
Unfortunately, many fraudsters take advantage of tax time with scams that prey upon seniors. To protect yourself from becoming a victim, follow these tips:
It's important to note that the IRS will never make unsolicited contact with you via email, phone, text message or social media direct messaging. Typically, the IRS communicates by mail only. Be suspicious of anyone who contacts you through one of these methods claiming to be the IRS.