Save Big on Taxes: Financial Aid Programs Every Senior Should Know

However, a lot of them remain unaware of the tax relief and financial programs that can help ease these burdens. Offered at federal, state, and local levels, these initiatives provide individuals, including seniors, the opportunities to reduce tax obligations.

This article explores key tax-saving programs for seniors, providing actionable insights allowing them to take advantage of these benefits.

Volunteer Income Tax Assistance (VITA)

First, you must know that the Internal Revenue Service (IRS) has a free tax preparation service that can help immensely. Known as the Volunteer Income Tax Assistance (VITA), the program aids individuals with low to moderate income in the accurate and timely filing of their tax returns.

IRS has certified volunteers offering this service. They operate at libraries, schools, community centers, and other local spaces during tax season.

So, for example, you are a senior who needs help understanding the deductions for your medical expenses. You could use VITA to ensure the correct filing of your taxes. As a low-income retiree, you can also access support to handle your property tax concerns or to maximize refundable credits.

Key features of VITA include the following:

• Eligibility: The service is available to individuals with an annual income of $60,000 or less, seniors, persons with disabilities, and non-native English speakers.
• Accessibility: Aside from translation services, VIRA also has resources for taxpayers with special needs.
• Services: VITA offers help with basic tax returns, including electronic filing. It also provides guidance on claiming deductions and credits, such as the Child Tax Credit (CTC) or Earned Income Tax Credit (EITC).

Visit the IRS VITA site locator tool to find nearby locations and access their services. You can also call the IRS at 800-906-9887 for more information.

Senior Property Tax Deferral or Reduction Programs

Aside from tax preparation assistance, you can also get help lowering or postponing property tax payments. These senior property tax deferral or reduction programs will aid you in managing costs on your fixed income.

These programs vary by local government or by state. Eligibility criteria include homeownership state, income, and age.

Examples of these programs include the following:

• California Property Tax Postponement Program: Allows eligible seniors to defer property tax payments on primary residences if they meet equity and income requirements. If you qualify for this, you can pay back your taxes with interest when you sell your home or its ownership changes.

  You are eligible for this program if you are a homeowner aged 62 or over with an annual income of under $49,017 with at least 40% equity in your home.

• Florida Senior Exemption for Long-Term Residents: Provides additional property tax reductions for seniors 65 and above who meet low-income requirements and have lived in their homes for at least 25 years.

  You can qualify for this program if you live in Florida and earn an income of less than $35,167 annually, which is adjusted for inflation.

• Massachusetts Circuit Breaker Tax Credit: Offers a refundable tax credit for seniors who pay property taxes or rent, with the costs exceeding 10% of their income.

  If you are aged 65 or over with an income limit of $64,000 if you are single or $96,000 if you are married, you are eligible for this program. The maximum credit is $1,200 annually.

Applications for these tax deferral or reduction programs must go through local tax assessor offices. So, you must contact their offices or visit state government websites for more details.

Free Financial Counseling Services

Now that you already have help in tax preparation and the resources that could assist in postponing tax payments, it is time to avail yourself of free financial counseling services. Nonprofits and local agencies often provide free advice to help older adults manage their budgets, optimize investments, and make informed decisions about retirement funds.

The services these organizations offer aim to empower seniors with the tools and knowledge to handle their finances. You can take advantage of them, too.

For example, the National Council on Aging (NCOA) Budget Checkup provides personalized advice on earning extra income and managing expenses. You can use the platform for guidance if you are a retiree looking for ways to make your income work.

Organizations like GreenPath and American Consumer Credit Counseling also offer seniors free debt counseling.

Make the Move To Save Big Today

Taking advantage of VITA or tax relief and financial programs can significantly ease the financial burdens you may face as a senior. It can help you ensure a more secure and comfortable retirement for yourself.

Use these resources. Don’t let these opportunities pass you by. You can save big and manage your finances if you check out the NCOA Budget Checkup platform today or see what AARP offers. Make every dollar you save provide you with the financial freedom you seek.