It’s that time of year. The time everyone has to pay taxes. And when it comes to taxes, there is no bigger authority than the Internal Revenue Service. The IRS developed the following tax tips for seniors to help them avoid some common errors and prepare an accurate tax return. Share these with your clients during this potentially troubling time:
- Make sure you calculate your taxable Social Security properly. Double-check the taxable Social Security worksheet if you are filing a paper form.
- The standard deduction amount is different if you and/or your spouse is age 65 or older and/or blind. If you are completing a paper form, make sure you are using the proper chart to determine your standard deduction.
- Make sure you report all sources of income, especially interest income.
- Review your prior-year tax return to assist you in completing your current tax return.
- If you choose to use a paid preparer, take them a copy of your prior-year tax return.
Also, remember to remind your clients about the telephone tax refund available to almost everyone who had a phone and paid a long-distance tax from Feb. 28, 2003, through July 31, 2006. People can pore over their back phone bills to figure the exact amount of the refund, or they can use the standard deductions:
- $30 for one exemption
- $40 for two exemptions
- $50 for three exemptions
- $60 for four exemptions
For more information on these and countless other tax issues, visit www.irs.gov.