Tax Day is right around the corner. If you’re 65 and older and have not wrapped up filing your taxes – we have some tips for you before the extended deadline on May 17th.
Count on your clock to keep you in check
The time you file electronically, i.e., the date and time of your time zone when your return is transmitted controls whether your return is filed on time. Pro Tip: Set a reminder on your alarm clock a few hours before the deadline if you’re running behind.
If you’re are missing a stimulus check – there is still a chance to claim it
For anyone who did not receive a stimulus check last year – you can claim the money on your 2020 tax return by using a IRS form called the Recovery Rebate Credit.
Now is the time to contribute to your retirement and health savings
Don’t forget you now have until May 17th to make an individual retirement (IRA) contribution for 2020. The deadline to contribute to health savings accounts (HSAs) is alsoMay 17th. Pro tip from Chapter’s Head Advisor Ari Parker: “Remember once you’re on Medicare, you can’t make contributions to your HSA account, but you can use the balance for Part B premiums, Part D drug plan premiums, or any Medicare Advantage premiums you have.” You can reach out to Parker and any of our advisors if you have similar questions at (605) 205-8869. They’re always happy to help.
If you are 65 years or older – you’re eligible for extra returns
According to the AARP, “Married taxpayers born before Jan. 2,1956, whether filing jointly or separately, get an extra $1,300 apiece added to their standard deductions. The additional standard deduction is $1,650 for singles and heads of households.”