Year end and tax time is a time of year that we all dread. This can be a very stressful time for our senior parents or loved ones who are on a fixed income or simply don’t know how to get the most breaks possible. There are the typical things that are looked at concerning taxes like charitable contributions and putting more money in tax-deferred retirement plans. Many older adults, as well as caregivers, miss out on important credits and deductions that they are entitled to and end up overpaying.
You will want to look at the following areas:
- Taxable income
- Pensions and annuity payments
- Itemized deductions such as medical and dental expenses
- Tax credits such as dependent care expenses, elderly or disabled credits, premium tax credits and Earned Income Credits (EIC)
Visit the IRS website for more information.
Free Tax Assistance
The AARP Tax-Aide program offers free tax preparation for anyone 50 years of age or older in Utah.
Year end is a great time to help our seniors take inventory of their possessions. An inventory can not only tidy up the home but it can help get the financial house in order too!
When we think about estate planning we usually think about wills and trusts. But this is a great time to really learn about your elderly loved one’s life and experiences. This is a chance to hear the stories surrounding all of the objects that have been collected over a lifetime!
As you sift through all of these possessions, keep a list of categories:
- Sentimental value like family heirlooms, letters and photo albums
- Unwanted items to appraise and sell
- Furniture and art (want to hold on to)
- Unwanted items to donate or sell in garage sale
This is also a time to look at any second properties that are becoming too much to take care of and could help supplement retirement income and improve cash flow.
Finally, as tax season approaches, have your loved one keep a look out for scams. Scammers are always updating their tactics. Examples for 2017 can be found here.
Golden Heart Senior Care Southern Utah, St. George, Cedar City would be happy to assist you or your loved one with year end tax preparation and estate planning. Please contact us today for more information on how we can help, as well as providing companionship services. You’re in Caring Hands With Golden Heart Senior Care Southern Utah.