The senior and retiree communities can find tax season particularly complicated and challenging. Many people have to wade through the rules around social security, retirement accounts and pensions. A lot of seniors and retirees are accustomed to filing taxes themselves without the assistance of tax experts. But several resources could be used for free or at a low cost to make filing easier.
The IRS helps support the Volunteer Income Tax Assistance (VITA) program, a federally funded initiative that provides tax preparation services for underserved communities, including seniors and retirees. All returns are prepared by IRS tax law-certified volunteers at no cost for senior and retiree communities throughout Florida.
The IRS also provides free basic tax returns through the Tax Counseling for the Elderly (TCE) program for people who are 60 years of age and older. TCE sites are usually located at community sites such as schools, libraries, schools, and shopping centers. To find the closest TCE site use the IRS locator https://irs.treasury.gov/freetaxprep/ or call 800-906-9887.
If you prefer to file your taxes online, you can file for free 24 hours a day, 7 days a week by visiting MyFreeTaxes.com. This allows you to file your taxes at a time that is most convenient for you. The site utilizes top-notch, secured software to ensure your information stays safe. The service also assists by answering questions through the phone, chat window, and email.
If you only receive income from Social Security and are an unmarried senior at least 65 years of age and receive less than $14,250, you typically do not have to file a federal tax return. If you are married, over 65 years of age, and have a combined gross income of $26,450, you typically do not have to file. Regardless of your filing status, it is always a good idea to check with a tax expert to ensure you don’t accumulate any penalties, please consult counsel and or an accountant.
How to Avoid Fraud or Scams for Filing Taxes
The senior and retiree community is considered a risk group when it comes to tax scams and fraud. Criminals know that filing taxes can be complicated and leave many people feeling stressed and more vulnerable to scams and fraud. The IRS recommends that people file their taxes early so that they are don’t feel the pressure of the April 18 deadline and don’t fall prey to scams and fraud. Each year criminals become savvier and find new ways to rip off the senior and retiree community. These are some of the most common scams to look out for this tax season:
Tax-Related Identity Theft
If you are expecting a big tax refund you should know that you are a target of thieves that want to steal it. Identity theft occurs when scammers get a hold of any combination of your name, address, birth date, or social security. So, how do you know if you are a victim of identity theft? If you try to file online or by mail but have your submission rejected because your return has already been filed, you are likely a victim and should complete the IRS 14039 Identity Theft Affidavit Form. The IRS will immediately investigate suspicious activity and work with you to ensure you get the justice you deserve.
Fraudulent Charitable Groups
For many seniors and retirees that are still receiving income, charities are a great way to deduct and save on taxes. A lot of scammers take advantage of the “giving spirit” and will solicit donations for fake charities and tell people that their donations will be deductible. We urge people to always verify that an organization requesting donations is real by going to their website and checking its legitimacy. Third-party sites can also provide you with valuable information that will help you determine if an organization is real.
The Gift Card Scam
This is among the most common scams during tax season. Thieves will call you and say you owe taxes and face penalties and possible criminal charges. A scammer will offer you to pay off the penalty by purchasing gift cards online or from a store and providing them with the cards’ numbers and PINs. You need to know that the IRS will never call you about penalties or money owed. All correspondence will be done by mail. Also, the IRS will never request you pay them with gift cards.
Stimulus Payment Scam
The Covid-19 pandemic changed the national landscape in many ways. People adjusted to a lifestyle that was confusing, stressful, and unpredictable. The federal government and many state governments provided financial support to people through stimulus payments. Thieves have taken these government payments as opportunities to steal by acting as IRS officials contacting people through email. Scammers will ask you to click on a fraudulent link and provide personal information they can use to redirect funds.
Here at OurSeniors.org, we aim to bring helpful information to enhance the quality of life or our senior and retiree communities. Check out our senior living magazine online at OurSeniors.net for more great resources. You can also follow us on Facebook for more content to help you and your loved ones lead happier and fuller lives.
