Wednesday, March 13, 2024

As tax season looms on the horizon, older adults may face unique challenges when it comes to preparing their tax returns. Several factors can make this process seem overwhelming, from income source changes to evolving tax laws. Taxes are due on April 15, 2024; however, with strategic planning and careful consideration, older adults can confidently tackle tax season.

There are many free resources available for older adults and their caregivers to receive assistance in preparing and filing tax returns.

Understanding Unique Tax Challenges for Older Adults

  • Diverse Income Sources: Older adults often have diverse sources of income, including retirement accounts, pensions, social security, and investments. Understanding how each income stream is taxed, and reporting each one accurately, is essential.
  • Healthcare Expenses: Older adults may incur significant healthcare expenses, and some of these expenses may be tax-deductible. It’s important to keep detailed records of medical bills, prescription costs, and all other documents related to other healthcare expenditures.
  • Dependents and Caregiving Responsibilities: Many older adults find themselves caregiving for grandchildren or other family members. Understanding the tax implications of dependents, including potential tax breaks for older adults and caregivers, is crucial for accurate tax preparation.
  • Retirement Account Withdrawals: Older adults often start withdrawing funds from retirement accounts during their retirement years. Knowing the tax implications of these withdrawals, including penalties for early withdrawal, or required minimum distributions, is a smart step in preparing for tax season.

Resources for Tax Preparation

Volunteer Income Tax Assistance (VITA)

The IRS’s Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs offer free basic tax return preparation to qualified individuals.

The VITA program has operated for over 50 years. VITA sites offer free tax help to people who need assistance in preparing their own tax returns, including:

  • People who generally make $64,000 or less
  • People with disabilities; and
  • Limited English-speaking taxpayers

Volunteer Income Tax Assistance and the Tax Counseling for the Elderly, or call (800) 906-9887


Free Tax Preparation Assistance

10 Things You Need to Know Before Filing Your Tax Return


General Tax Information for Seniors & Retirees

Tax Guide for Seniors: Preparing for 2023 Returns


Sign up with your email address to receive news and updates from us!