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Tax time is almost here again, so it's time to get everything ready. Getting an early start can simplify the process, and it's easy to get a jump-start on your taxes. Just follow these tips to ensure you're set for tax season.

1. Brush up on Changes

Every year, the IRS issues new guidance for taxes, and laws change all the time. For the 2022 tax year, some of the major changes include:

• Standard deductions have increased to $25,900 for couples filing jointly, $12,950 for married couples filing individually and $12,950 for single taxpayers.
• The annual exclusion for gifts has increased to $16,000.
• Certain selling platforms and payment processors such as eBay, Venmo and PayPal will now send 1099-K forms if they processed more than $600 in payments during the year.
• Contribution limits for IRAs, 401(k)s, 403(b)s and most 457 plans have also increased.

2. Figure Out How You'll Get Your Taxes Done

Once you've brushed up on tax changes for the year, it's time to determine how you'll have your taxes prepared. If you prefer to do them yourself and have an adjusted gross income of $73,000 or less, you may be able to use Free File, a guided tax preparation service available through IRS.gov that's completely free.

Seniors with a higher level of income may wish to consider other tax preparation programs such as TurboTax or TaxAct. These programs ask you a series of questions and then perform all the calculations for you.

For those who struggle with tax preparation, there are other options available, such as:

• Tax preparation businesses: Large chain tax preparation services such as H&R Block will prepare your taxes for you for a fee. You can also enlist the help of a Certified Public Accountant (CPA). The Texas Society of Certified Public Accountants can help you find one in the Arlington area.
• AARP Foundation Tax-Aide service: The AARP offers free in-person and virtual tax assistance for people over the age of 50 who qualify as low to moderate income. You can use their online tool to find a volunteer preparer in or near Arlington.
• Area Agency on Aging of Tarrant County: The Area Agency on Aging offers free financial counseling for all seniors. They may be able to assist you with tax questions or refer you to a professional tax preparer.

As a part of our services and amenities for residents, Bethesda Gardens senior living community in Arlington can provide free transportation to scheduled appointments with your tax preparer.

3. Gather Your Documents

Whether you're going to prepare your taxes yourself or have someone do them for you, you'll need access to your financial information. Start a file that includes:

• Social Security number
• SSA-1099 or 1042S Benefit Statement
• W-2 forms, if you're currently working
• 1099 forms that report income
• Tax deduction documents such as Form 1098
• Medical bills you paid out of pocket
• Receipts for charitable contributions
• Proof of IRA contributions

4. Consider Last-Minute Contributions

Speaking of contributions, did you know you can make deductible contributions to IRA accounts for 2022 up until April 18, 2023? If you're eligible, making contributions now could lower your taxes. You also have until December 31, 2022, to make additional contributions to a 529 Plan to save for your children's or grandchildren's college education.

5. Complete the Social Security Benefits Worksheet

If you're going to prepare your taxes yourself, calculate the taxable amount of your Social Security benefits with care. If you receive Form SSA-1099, use the Social Security benefits worksheet to calculate the amount. You can obtain one from the IRS website. Consider printing out two copies in case you make any errors or wish to start over.

6. Familiarize Yourself With Common Tax Scams

Unfortunately, many fraudsters take advantage of tax time with scams that prey upon seniors. To protect yourself from becoming a victim, follow these tips:

• Never give out your Social Security number or other personal information to an unknown person. Contact the IRS directly to confirm the identity of anyone requesting information from you.
• Don't agree to wire money over the phone or provide your credit card number.
• Avoid clicking on any links in emails or text messages that claim to be from the IRS.
• Use a unique password that contains numbers, letters and special characters when setting up accounts with the IRS or a tax preparation site. If the site provides the option for two-factor authentication, take advantage of it. This adds an extra layer of security to protect your account. Most often, you provide your cell phone number and are then texted a code to enter before you can log in.
• Report scammers to the Texas Office of the Attorney General.

It's important to note that the IRS will never make unsolicited contact with you via email, phone, text message or social media direct messaging. Typically, the IRS communicates by mail only. Be suspicious of anyone who contacts you through one of these methods claiming to be the IRS.

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