Last-Minute Tax Moves - Senior Planet from AARP

Once again April 15 is knocking on the door.And even with deadlines looming, there are still some last-minute actions you can take to reduce your 2024 taxes.Beware of tax-related scams.For seniors and retirees, the No.

1 thing is to watch out for is scams, says Jennifer Belmont Jennings, wealth planning and estate attorney at MGD Law in St.Louis, Missouri.Remember that the IRS is not going to call you or email you or text you.

They typically send a letter.And you want to make sure youre not taking phone calls or texts or emails and giving anybody your personal information.Always go to the website if you need to contact them and make sure youre at irs.gov.

Thats really important to remember during this time because a lot of people are going to receive those phone calls, texts and emails and be worried that the IRS is coming after them, and thats not how the IRS operates.Qualified Charitable Distributions.If youre receiving Required Minimum Distributions (RMD) from your retirement accounts, and dont need the income, you should can direct a portion of that distribution to go straight to a qualified charity, says Greg Clement, personal finance expert at CEO ofFreedomologya technology and coaching company .This maneuver, known as a QCD, lets you satisfy your required minimum distribution while keeping that money from being added to your taxable income, he says.Essentially, youre supporting a cause you care about and trimming your tax bill at the same time.

Its a graceful solution for those looking to give back and manage their income effectively.If you havent already, contribute to your IRA.While workers must have made contributions to employer-sponsored 401(k) by Dec.31, sole proprietorships and single member LLCs have until tax day.

Those limits are $23,000 in 2024.You also have until tax day to make a contribution to your IRA.For 2024 and 2025 the contribution limit is $7,000 and an additional $1,000 catch up contribution if you are 50 or older.

Maximize Senior Tax Credits and Deductions.Seniors have access to several tax credits and deductions that can substantially reduce their overall tax burden, says Clement.This includes credits for the elderly or disabled, deductions for qualified medical expenses, and even some state-specific benefits.Also, Jennings says, If youre 65 or older, you can get a little bit extra on your standard deduction.Make sure youre taking that.

Look and see if your county offers property tax breaks or freezes if youre a certain age.Thats not the same kind of income tax, but its still money that adds up.Start preparing for next year.Its a great time to take inventory of your assets, because youre going to be receiving 1099s and K-1s, and youll be able to see where your money is, says Jennings.

Its a good time to check and see that you have accounts registered the right way, that beneficiaries are listed properly.That can be helpful during this time of year.And I think from a more of a practical tax standpoint, you want to see if youve increased your Medicare premiums with your income.

But generally, you do want to think about your income and what that can do to your Medicare premiums.(Higher income Medicare recipients pay a surcharge, called the Income Related Monthly Adjustment Amount, or IRMAA) Get expert help on your taxes, but not on social media.I have a philosophy that you can only have one day job, and most peoples day job is not tax preparer or tax expert, Jennings says.Even though I actually do taxes in my job, I dont do my own taxes.

I hire someone to do mine for me.I think its good if you can have a second set of eyes.There are some people that your taxes are incredibly simple, and you may be fine doing them yourself, but I think its a great idea to work with somebody if you can do so, because they may know things that you dont.

They can help you avoid making mistakes.People like to go to social media, and a lot of the people who are the most unqualified to give tax advice seem to be the most popular, she says.They shoot out things that are just not true.Making sure youre getting your tax advice from a reliable source is very important.

So, I would generally discourage people from trendy TikTok tax advice, because that can get you into really big trouble.And most of the people who are qualified to give tax advice arent really sharing it in that way.Need help preparing your taxes? AARP Foundation Tax-Aide can help.Find details here.Rodney A.

Brooksis an award-winning journalist and author.The former Deputy Managing Editor/Money at USA TODAY, his retirement columns appear in U.S.News & World Report and SeniorPlanet.com.

He has also written for National Geographic, The Washington Post and USA TODAY and has testified before the U.S.Senate Special Committee on Aging.His book, The Rise & Fall of the Freedmans Bank, And Its Lasting Socio-economic Impact on Black America was released in 2024.

He is also author of the book Fixing the Racial Wealth Gap.His website iswww.rodneyabrooks.comYour use of any financial advice is at your sole discretion and risk.Seniorplanet.org and Older Adults Technology Services from AARP makes no claim or promise of any result or success.