Whether you’re retired or still working, here are 5 must-know tax tips for seniors:
5. Utilize the 1040-SR Tax Form
Traditional tax forms use tiny print that’s a strain on the eyes. Fortunately, people over 65 can take advantage of a new tax filing form that’s much easier to read. This two-page form is called 1040-SR.
Unlike other tax forms, 1040-SR has a much larger font than traditional tax filing paperwork. Additionally, the form spaces out characters and uses contrasting colors to allow the words stand out on the page.
Who can use the 1040-SR tax form?
If you’re 65 or older as of the start of the current year, you can use this new form to file your returns for the previous tax year. If you’re a married and are filing jointly with your spouse, only one of you needs to be 65 or older at the start of the current year to use form 1040 SR.
Special Deductions and Instructions
Adults 65 and older can take advantage of several deductions when filing taxes this year. Below, we cover some of the most helpful deductions that’ll give you the most significant return.
4. Consider Higher Standard Deductions
If you don’t itemize your deductions, you may be eligible for a higher standard deduction as an individual aged 65 or older. Married couples filing jointly can also qualify if either you or your spouse is 65 or older as of the start of the current year. Those who are partially blind may be eligible for an even higher standard deduction. Instructions on claiming the standard deduction can be found on Form 1040 and Form 1040A.
3. Understand Taxation of Social Security Benefits
If you or your spouse receive Social Security benefits, it’s important to know how they are taxed. Not all Social Security benefits are subject to taxation, as it depends on your income. For single individuals, income over $25,000 is taxed, while for married couples filing jointly, income over $32,000 is subject to tax. Forms 1040 and 1040A provide instructions for filing taxes on Social Security benefits.
For more information on taxation of Social Security Benefits, visit this IRS link.
2. Explore Additional Credits
Seniors over 65 may qualify for additional credits from the IRS. By using Form 1040 or Form 1040A, you can determine if you meet the criteria for these credits. Visit the IRS website for more information on requirements and eligibility.
1. Take Advantage of Free Tax Prep Services
Filing taxes can be overwhelming, especially if you lack experience in accounting. To ensure you don’t miss out on any deductions or credits you may be eligible for, consider utilizing free tax preparation services. The IRS sponsors volunteer tax assistance programs specifically for adults over 60. You can visit the IRS website to find free tax filing assistance near you. If you have specific questions or need personalized advice, it’s always recommended to consult with a licensed tax professional.
Fortunately, the IRS sponsors volunteer tax assistance programs for adults over 60. To find free tax filing assistance, visit the IRS website. And if you have questions about tax tips for seniors that are not addressed here, we recommend seeking advice from a licensed tax professional.