Four Common Errors:
- Standard Deduction - Persons who are 65 or older are entitled to a larger standard deduction; however, many senior citizens do not take this higher deduction.
- Social Security Benefits - Income from Social Security may be taxable, depending on many factors, including total income and filing status.
- Schedule D* - Income from qualified dividends is generally taxed lower than the standard rate.
- Social Security Numbers - Be careful when writing in social security numbers of dependents, as mistakes will cause delays in processing returns and refunds.
As baby boomers reach retirement age, more and more of the U.S. population will be dependent upon different sources of income, including social security. It is important for persons age 65 and older to understand how their age and their new sources of income will impact their individual income tax returns.
Calculating taxable social security benefits and failing to take the higher standard deduction for persons age 65 years or older are the two most repeated errors made by seniors who file paper tax returns. Calculating the tax on qualified dividends and incorrectly writing the social security numbers of dependents are also among the top common errors made by persons 65 and older.
To help save you time and money, you can eliminate these common errors by simply e-filing. Tax returns that are e-filed are more accurate, fast and easy, and most of all secure.
What Can You Do?
- Be aware of the most common errors made by taxpayers 65 and older.
- Spread the word and get the message out to other taxpayers 65 and older.
- Make sure you report all sources of income, especially interest income.
- Review your prior year tax return to assist you in completing your current year tax return.
- If you choose to use a paid preparer, take them a copy of your prior year tax return.
- Consider e-filing.
Additional resources to assist you with the preparation of your Federal tax return are:
- TCE (Tax Counseling for the Elderly) 1-800-829-1040
- VITA (Volunteer Income Tax Assistance) 1-800-829-1040
- AARP Tax Aide 1-888-227-7669 or at www.aarp.org
Publication 4644 (Rev.1-2009) IRS.Gov
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