Your Proactive Caregiver Advocate: Dr. Cynthia Speaks!

Topic: Have You Prepared for Tax Season for Your Elderly Loved One

Photo by Jon Tyson on Unsplash

Caring for an elderly loved one has financial requirements. It’s tax season, and loved ones with pensions, retirement accounts, and taxable assets must file with the Internal Revenue Service (IRS). January 31st is a good time to begin the process. The last day to file is April 15th unless you request an extension.

What Documents are Needed

The essential documents needed are W-2s, 1040-SR income tax returns for Seniors, Social Security statements, and 1099-Rs. The 1099-R is an IRS tax document reporting distributions or withdrawals from pensions, annuities, IRAs, profit-sharing plans, or insurance contracts. Anything that details the gross amount, taxable portion, and any funds withheld must be reported. While collecting documents, look for deductions for your loved one, especially if they are in the lower or middle income bracket.

News You Can Use

AARP Executive Vice President and Chief Advocacy and Engagement Officer Nancy LeaMond issued the following statement: “This year’s tax season is bringing meaningful financial relief to older Americans. In addition to the existing standard deduction, filers who are age 65 and older can qualify for a new senior bonus deduction of up to $6,000 for individuals and $12,000 for married couples. This deduction is targeted to lower- and middle-income retirees and will help tens of millions keep more of their income. With ongoing anxiety around cost of living and kitchen table budget issues, this kind of relief can make a critical difference for folks trying to make ends meet.”

Finding the Right Tax Preparer

AARP Foundation can help through Tax-Aide, the nation’s free tax assistance and preparation program. Beware of scammers who are looking to take advantage of older adults. Don’t let your loved one be one of them. Check out taxaide.aarpfoundation.org.

As Your Proactive Caregiver Advocate, remember your role has many layers, and tax time falls within the caregiver arena. Income tax for older adults, especially those 65 and over, can seem complex. Dealing with multiple income sources can be challenging. Get tax help! You’ll discover new tax credits and deductions so that you’ll be better prepared to tackle your tax return this year on behalf of your loved one. Be Safe! Be Well!

Dr. Cynthia J. Hickman is a retired registered nurse and case manager who serves as the CEO of Your Proactive Caregiver Advocate. She’s excited to share her latest book, The Essential Caregiver Training Course for Corporations and Community. Her previous work, From the Lens of a Daughter, Nurse, and Caregiver: A Journey of Duty and Honor, and The Black Book of Important Information for Caregivers, reflects her experiences and insights from her heartfelt caregiving journey.

Website: www.cynthiajhickman.com