If you're a senior who needs to file your income tax return soon, you may use an online third-party tax service to assist you. But if you don't understand what you need to do to file your taxes properly, you may make costly mistakes on your forms. An account can help you prevent costly mistakes with your tax return and other forms. Learn what you need to obtain to file your taxes and how an account can help you prepare them below.
What Should Senior Tax Filers Know?
If you receive monthly benefits from a retirement fund, such as Social Security or another government entity, your tax preparation forms may be reasonably straightforward or simple. You may only need to report the funds you receive from your benefits at the beginning of the tax season. But if you receive income from employment, investment accounts, or other sources, you may need to gather and report specific information on your tax forms. If you don't report all of your income, you may encounter issues with your taxes.
If you didn't do so yet, contact your banking institution and request documentation for your retirement funds, paychecks, and other sources. If you use an investor to keep track or monitor your finances, obtain documentation from them.
Contact an account to schedule an appointment to file your tax return.
What Will an Account Do for You?
An account will examine your forms to see whether or not you qualify for a simple return or something else. If you're over 65 years of age, you may need to file special preparation forms with the Internal Tax Revenue at tax time. The forms allow you to report your earnings if they fall within a specific amount, such as $12,550 for single adults without dependents.
The forms may also allow you to apply for and receive tax breaks based on your income and living situation, including earned income credit. If you provide care for your grandchildren or other minors, you may qualify for earned income credit for them. An accountant can calculate your income to see if you meet the criteria for earned income credit.
An account may also go over the taxes you may pay on your home and the expenses associated with it. You may be able to qualify for credit if you overpay on your home's taxes and upkeep. However, you must speak directly with an accountant about your home and how to obtain credit for it.
For more details on filing your income tax return, contact an accounting firm such as Frady & Stafford, CPAs, PA today.