Tax Season Ahead: How to Start Preparing

No one wants the stress of waiting until the last possible minute to prepare their tax return, but many people do. Oftentimes it’s because the idea of gathering everything you need to get started is a bit overwhelming. That makes it easy to procrastinate.

If you need motivation to get this project rolling, keep in mind that people who file early are less likely to be victims of tax-related identity theft. According to the Internal Revenue Service (IRS), that’s when someone steals your personal identity and uses it to try to claim your tax refund. It can be a real mess to sort out.

Prepare Now for Tax Filing Season

So, what can you do now to make the tax deadline less stressful? Here are a few tips:

• Ask around for referrals to a good tax preparer: If you don’t already work with a tax preparer, now is the time to find one. The longer you wait, the less likely that you’ll be able to get an appointment with a top-quality professional. Word-of-mouth referrals are often a good way to find someone. But don’t stop there. Before hiring any tax preparer, spend a little time online researching them to confirm they are still a professional in good standing.
• Get your paperwork together: For those who haven’t kept a file of important documents throughout the year, this might be the task that takes the most time. You’ll need to round up any Social Security documents, income statements (W-9 and MISC-1099), tax deduction records (don’t forget about charitable donations) and receipts, medical bills, IRA contributions, and copies of your last year or two of tax returns. If you pay for or help pay for senior care for a partner or family member, bring that information, too.
• Explore tax preparation software: If you’re comfortable preparing your own taxes, it’s a good idea to explore your options early. Depending on your personal situation, one software package may be better for you than another. This tax preparation software review article from NerdWallet may be a useful starting place.

Free Tax Assistance for Older Adults

For seniors who aren’t comfortable filing their own taxes or those on a limited budget, there are resources you can take advantage of for help.

• AARP Foundation Tax-Aide: This program matches taxpayers over the age of 50 who have low or moderate income with free tax assistance. Use the AARP Tax-Aide Locator to find a site near you. They offer both in-person and virtual help.
• IRS Volunteer Income Tax Assistance (VITA): This free tax assistance service for older adults who make $60,000 or less per year or those with disabilities might be another solution to explore.
• IRS Free File: If you prefer the do-it-yourself approach to income taxes, this might be a good option. For those who qualify, you can utilize free guided software or electronic fillable forms to complete your taxes.

One final suggestion is to take a few minutes to read Avoiding Identity Theft During Tax Season. It may help prevent you from falling victim to one of these increasingly common scams.

Another Way to Protect Yourself or a Loved One

Winter is a great time to consider investing in another safety program: a Life Protect 24/7 mobile monitoring unit. If you experience an emergency of any kind, an easy press of a button on this discreet device can connect you with help. Call 1-844-203-5617 today to learn more!