As we age, it can become more difficult to manage our finances and keep up with our tax obligations.
Here are a few of the options available however, you must discuss this with any Tax Relief Professional too.
Age 70 ½ exception
If you are 70 ½ years or older, you may be able to exclude up to $100,000 from your taxable income by making a qualified charitable distribution from your IRA. This is a direct money transfer from your IRA to a recognized nonprofit organization
Extended due dates
Seniors who are unable to file their taxes by the April 15th deadline may be able to receive an automatic six-month extension to file their return.
Senior citizen’s tax credit
If you are 65 years of age or older and have a low to moderate income, you may be eligible for the Senior Citizen’s Tax Credit. This credit can reduce your tax liability and may even result in a refund.
Simplified tax filing
Seniors may find it easier to file their taxes by using the IRS’s free e-file option or the simplified tax form, Form 1040-SR.
If you are unable to pay your tax bill in full, the IRS offers several payment plan options to help you pay your taxes over time. This includes the installment agreement and the partial payment installment agreement.
If you are unable to pay your taxes due to financial hardship, the IRS may provide penalty relief.
Innocent spouse relief
If you are facing tax liability due to a tax error made by your spouse, you may be eligible for innocent spouse relief. This relief allows you to be relieved of the tax liability and avoid paying any taxes, interest, or penalties.
Collection due process
If you are facing collection action from the IRS, you may be able to request a collection due process hearing. This hearing will give you the opportunity to present your case and dispute any proposed collection action.
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