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 Accounting Services | Tax Preparation For Seniors

 

While many people think tax preparation for all people calls for the same expertise and skill set, this is not entirely true. Beyond the basic knowledge of the tax code, the greatest value of a tax preparer is his or her ability to find legitimate deductions that the taxpayer might not have been aware of, and especially helpful for senior tax services.

For the young, their rapidly changing lifestyle means the ideal tax preparer will be an expert at examining a person's life and identifying potential deductions and suggesting slight changes to create additional deductions. For a senior, this is far less of a factor. A mature person is an established person and changes are few and far between. With a fixed income, fixed expenses, fixed lifestyle; the lack of change means a tax preparer should focus far less on the individual's activity and more on any special tax treatment the person's demographic could offer.

Tax deductions are the government's way of showing preference for certain people and activities. For example, to encourage people to be charitable, the charitable contribution deduction encourages taxpayers to volunteer resources, saving the government the cost associated with administration of such things. Likewise, as a recognition that certain demographics are disadvantaged in comparison to others, deductions are created to maintain a fair tax environment for people in vastly different circumstances. As most seniors exist on a limited - if not completely fixed - income, the addition of major expenses could result in financial disaster. As time takes its toll, seniors are also more likely than other demographics to require some expensive things like standing prescriptions and mobility options. Since the government is well aware of this and has no desire to beggar the population, such things are often deductible for seniors. The catch is that the deductions are not taken if the tax preparer is unaware of them.

Overall, choosing a competent accounting service with experience dealing specifically with seniors is a very wise idea. An expert who makes it a point to remain abreast of changes in the tax code and how they affect senior citizens is an invaluable resource for any elderly person wishing to get every deduction the government Is making available. 

 

 

Use our #2 Advisors For Seniors section to find an Accountant to prepare your taxes in your area!