5 Tax Filing Tips for Tax Season

With tax season right around the corner, it becomes time to talk about five tips to help you get through it correctly and maximize your benefits.

1. Understand Your Tax Obligations

As a U.S. citizen, you're generally required to file a federal income tax return if your income exceeds a certain threshold, which applies even if you live on tribal lands. Your state tax obligations may vary depending on your state of residence and income sources, with some states offering tax exemptions or credits specifically for Native American elders. Additionally, it's important to understand that some tribes may have their own tax laws, so being aware of any tribal tax obligations you may have is crucial.

2. Gather Important Documents

• Social Security Number (SSN): You'll need your SSN to file your taxes.

• W-2 Forms: If you received wages from an employer, they'll send you a W-2 form showing your earnings and taxes withheld.

• 1099 Forms: If you received income from other sources, such as interest, dividends, or pensions, you'll receive 1099 forms.

• Records of Tribal Income: Keep track of any income earned on tribal lands or through per capita distributions.

• Tax Documents for Dependents: If you're claiming dependents, gather their SSNs and other relevant information.

3. Explore Tax Credits and Deductions

Tax credits for the elderly or the disabled can provide significant financial relief, as individuals who meet specific age or disability requirements may be eligible for this non-refundable credit, which helps to reduce their tax liability. Additionally, for those who do not itemize deductions, the standard deduction offers a fixed amount that effectively lowers taxable income. Another potential tax benefit is the medical expense deduction, which allows taxpayers to deduct medical expenses that exceed a designated percentage of their adjusted gross income, further alleviating financial burdens related to healthcare costs.

4. Seek Assistance if Needed

The Tax Counseling for the Elderly (TCE) program, sponsored by the IRS, offers free tax assistance to individuals aged 60 and older. In addition, the Volunteer Income Tax Assistance (VITA) program provides complimentary tax preparation services for low- and moderate-income individuals, including seniors. Many tribes also have Tribal Tax Assistance Programs that offer free tax help specifically for their members.

Furthermore, the NFDC employs certified financial planners and coaches who can provide personalized guidance and support to help you navigate the tax filing process effectively.

5. File Electronically or by Mail

E-filing is the fastest and most secure way to submit your tax return, allowing you to use tax preparation software or hire an online tax preparation service. Alternatively, you can download tax forms from the IRS website and mail them to the address provided.