Taxes are incredibly complex in this day and age, say Patrick Madden and Annette Spaulding of Spaulding & Madden Tax Services in Westminster. The very first Form 1040 in 1913 was only three pages long and now, when your return is complete, you end up with a small encyclopedia. Tax issues and planning for seniors is one of the most important issues tax preparers deal with. There are too many issues to cover but here are a few, according to Spaulding and Madden:
- Seniors are often faced with medical issues that can also lead to home improvements or renovations due to medical problems, and that can have tax implications.
- For those who are still working and receiving Social Security, you must plan your tax withholding, as up to 85% of your Social Security can be taxable, depending on your earned income.
- Pensioners after age 70 must have Required Minimum Distributions taken out of their pensions or face penalties.
- Seniors with investment income fared well the fast few years, as the capital gain rate was set at 15% or less for 2012. It can even be 0%, depending on circumstances. This affects you if you sell stocks or property other than your primary residence. But who knows what Congress will pass this coming year?
- One of the most important issues that seniors must deal with is estate planning. It is critical that you consult with a professional to properly plan for your estate. “We cannot stress enough the importance of sitting down with a tax professional and discussing your situation in order to properly plan for your retirement years,” Spaulding and Madden say.
Resources for you
There are resources available to assist you with your tax preparation and the sooner you get started, the easier it will be to submit your taxes in a timely manner. For starters:- SEVCA (located at 91 Buck Street in Westminster, next to Allen Brothers), in cooperation with the United Way, will provide FREE tax return preparation. This service is provided through the IRS Volunteer Income Tax Assistance (VITA) program, which offers free tax help for taxpayers who have household income up to $50,000. For more information, call SEVCA directly at 802-722-4575.
- H & R Block will provide a free “second-look” service for any of your tax returns over the last three years as well as reviewing this year’s return, prior to submittal. They’ll make sure you’re receiving all the proper credits and deductions you may (or may not) be entitled to. Contact one of the local offices in Bellows Falls (802) 463-4633 or Brattleboro (802) 257-7809.
Additionally, you can dial 2-1-1 to find out more about getting assistance for tax preparation. The Vermont-based website - http://www.vtlawhelp.org/taxes - will also provide you with detailed information on how to get tax preparation. There are some requirements, so be sure to read or to call and ask questions first.
AARP also provides an online service where you can look for agencies that provide free tax support. Please visit http://www.vtlawhelp.org/node/160 for more information.
Westminster Cares offers many opportunities to volunteer. You can deliver Meals on Wheels, take an elderly neighbor to the doctor or shopping, visit someone who lives alone, take a walk with a neighbor or serve on one of our committees. To find out how you can volunteer, call Westminster Cares at 722-3607 or email wecares@sover.net
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