MONEY & SCAMS
2022 tax season filing tips for seniors By Marianne Hering
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ou may be working in the same career, switching to a different job or adjusting to retirement, but regardless of your employment status, it’s tax season. Unlike last year, we will not get extra time to file—so it’s time to gather your documents and get to it! To help you prepare, tax expert Kate Bell answered some pertinent tax questions. Q: What should I know about the Recovery Rebate Credit for 2021 filing? A: Did you receive the third economic impact payment (also called the recovery rebate credit that arrived between March 2021 and December 2021) of $1,400 per eligible household member? The IRS is sending out Letter 6475 to taxpayers who may not have received the proper amount. The IRS could have this amount wrong, so verify the amount you and your family received before entering it in your tax return. Q: What life events may affect my taxes? A: Did you buy or sell a house, move, retire, start a business, take care of a dependent, become dependent, change banks or close a brokerage account? All these events can affect your filing or the amount you owe. Q: What is the best way to file? A: E-filing and direct deposit are still the fastest way to get your taxes filed and receive your refund. Because the IRS has a backlog of around 6 million paper returns from last year, filing on paper will cause delays with your refund. Note: There are many “free” sites for e-filing federal returns, but you may be charged a fee for state filing.
36 | MONEY & SCAMS | MARCH 2022 |
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Q: When are taxes due? A: Here’s that info direct from IRS. gov: “For the 2021 tax return, the due date is April 18, 2022, because of the Emancipation Day holiday in Washington, DC. Taxpayers in Maine and Massachusetts have until April 19, 2022 because of the Patriots’ Day holiday in those states.” Extensions can be requested, but you still need to estimate what you owe and pay it by the April deadline for your state. Q: I started my own business in 2021. What do I need to know? A: Depending on the type of business, you’ll most likely need to fill out a schedule C. In general, you should track expenses and income, and then pay estimated taxes. You would do best to consult with an enrolled agent for specifics on which expenses you should be tracking. For example, if you began as an Uber driver, you should track mileage, fuel, mechanical expenses and parking fees. You will need to decide during the first year a car is put into service if you will take standard mileage, or if all the expenses of the vehicle are for work. Q: What tax benefits are retirees entitled to? A: Colorado allows a pension/annuity subtraction for two groups: • Taxpayers who are at least 55 years of age as of the last day of the tax year. • Beneficiaries of any age (such as a widowed spouse or orphan child) who are receiving a pension or annuity because of the death of the person who earned the pension. What are those subtraction amounts? • Qualified taxpayers who are
