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Tax time: how can you efficiently help your elderly parents file their taxes?

Filing up taxes is different for almost all people. For example, it is not the same to be dependent or independent. It is also different according to your age, if you have investments, and so on. Being still active or retired is another important difference, as well as having children that you are supporting, or even if you have to pay a mortgage or not.

In case you want or need to help your parents file their taxes, there are some things to take into consideration. First of all, find out if they are eligible to receive any of the free tax preparation services. If you need help, you may be able to get it through the Volunteer Income Tax Assistance (VITA) Program, as well as the Tax Counseling for the Elderly (TCE) Program.

Also, be sure to prepare all their documents before filing their taxes. Organize their tax records, including W-2 forms from their employers; forms 1099, from banks and other payers; other income documents; Virtual Currency Transaction Records; Form 1095-A and Marketplace Health Insurance Status, among others.

Be aware that the elderly may need to fill the 1099-R form, which is specifically for retirement or Social Security income, or even the 1040-SR form for seniors.

Also, be sure to include the Economic Impact Payment notice in your documents. Everyone who has received a stimulus payment should find Notice 1444, which provides information about the payment amount, how it was made, and how to report a missed payment. Most taxpayers eligible for the refund recovery credit have already received the full amount in Economic Impact Payments. If you did not receive the full payment amount for which you are eligible, you may qualify to receive a refund recovery credit.

Additionally, be sure to report unemployment benefits. If you received unemployment compensation, you must include the information when you prepare your tax return. How your benefits are taxed will depend on whether you elected to have taxes withheld from each check or whether you elected to have payment issued for the full amount of your benefits. The IRS offers more information on the subject.

File online and use direct deposit to get refunds faster. Through the Internal Revenue Service's Free File program, you can prepare and file your federal income tax return for free. On the IRS website you can choose a Free File option based on your income.

It is also important to protect your information by obtaining your PIN for Identity Protection. All taxpayers are able to access the identity protection program (IP PIN), a six-digit code that you will only share with the IRS and that helps you prevent identity thieves from file fraudulent tax returns with your personal information.

If you have more questions about the process for filing your tax return, get the information as quickly as possible at IRS.gov. For official information on taxes and other topics related to Government programs and services, visit the USAGov website and, for the latest news, follow it on Facebook, Twitter and subscribe to its emails.

Also, consider the AARP Foundation Tax-Aide. In some occasions, if your parents need assistance with their taxes, AARP Foundation Tax-Aide might be able to help. Since 1968, this volunteer-based program has helped almost 50 million low- to moderate-income taxpayers.

They offer free tax preparations for people over 50 years who can’t afford to hire a tax expert. These IRS-certified volunteers are able to handle highly complicated issues related to retirement and other life changes of the elderly.

With more than 5,000 locations, AARP Foundation Tax-Aide can be easily found at malls, local senior centers, libraries, and community centers all over the United States. AARP services are free and no membership is required. Find out if your parent may qualify at www.aarp.org.

We know that taxes can be extremely confusing. If you feel that you need more information and useful tips for the elderly to file their taxes, visit the IRS website. This way you can get a lot of information and tips that can simplify your process, and be sure to comply with the law and even get some tax refund.

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