‘Nothing is certain but death and taxes’, according to Benjamin Franklin, but in saying that he was perhaps too pessimistic, particularly for seniors. Although taxes can be a major burden for the young, seniors often benefit from the breaks that society wants to give them. However to so benefit it is important to complete a tax return. Even for that, help is often available to elders.
In the US, you can do this online and the IRS has begun now to accept 2011 tax returns.
IRS officials encourage the use of e-filing. More than 1 billion returns have been e-filed, an electronic transmission system that “revolutionized the way the IRS processes tax returns and made speedy refunds possible,” officials said. More than 112 million income tax returns, or 77 percent of all individual returns filed, were e-filed last year.
Tax Returns by Free File in the U.S.
The easy way to make your e-file return is to use Free File.
Free File is a free, federal income tax prep and electronic filing program for eligible taxpayers, developed through a partnership between the IRS and the Free File Alliance, a group of private sector tax software companies. Taxpayers can do their federal income tax returns using commercial online software provided by the Free File Alliance companies. You must go to IRS.gov to access Free File. This year, you have until April 17, 2012, to file and pay your taxes or request an extension.
There’s also a FAQ web page on Free File. You will note that the Free File program is open only to taxpayers with a 2011 Adjusted Gross Income (AGI) of $57,000 or less. Each participating company sets its own eligibility requirements and not all taxpayers will qualify for all companies. Individual company offers may be limited by AGI, geographic location, specific states and include other criteria, so it’s important to review the criteria before you choose. Or use the “Help Me Find a Free File Company” tool to help you find a program that meets your needs.
If you need help in completing your tax return, then you may be able to benefit from Free Tax Return Preparation by Volunteers. The IRS Volunteer Income Tax Assistance Program (VITA) and the Tax Counseling for the Elderly (TCE) Programs offer free tax help for taxpayers who qualify.
The VITA Program offers free tax help to low- to moderate-income (generally, $50,000 and below) people who cannot prepare their own tax returns. Certified volunteers sponsored by various organizations receive training to help prepare basic tax returns in communities across the country. VITA sites are generally located at community and neighborhood centers, libraries, schools, shopping malls, and other convenient locations.
The TCE Program provides free tax help to people aged 60 and older. Trained volunteers from non-profit organizations provide free tax counseling and basic income tax return preparation for senior citizens. Volunteers who provide tax counseling are often retired individuals associated with non-profit organizations that receive grants from the IRS.
As part of TCE, AARP offers the Tax-Aide counseling program at more than 7,000 sites nationwide during the filing season. Trained and certified AARP Tax-Aide volunteer counselors help people of low-to-middle income with special attention to those age 60 and older.
E-filing Tax Returns in Canada
In Canada, NETFILE allows you to file your personal income tax and benefit return directly to the Canada Revenue Agency (CRA) using the Internet.
The NETFILE transmission service is open from February 13, 2012, until September 30, 2012, for the electronic filing of your 2011 personal income tax and benefit return. Tax returns filed via NETFILE must first be prepared using one of the 2011 commercial tax preparation software packages or Web applications certified for NETFILE. The two certified software suppliers for 2012 are TurboTax and TaxChopper 2011 from CuteTax. You can check these websites to see if you qualify for their free offerings.
Canada also has a Community Volunteer Income Tax Program (CVITP). The objective of the CVITP is to help eligible individuals who are not able to prepare their income tax and benefit returns by themselves.
E-filing Tax Returns in the UK by Self Assessment
In the UK, it is possible to send a Self Assessment tax return online to Her Majesty’s Revenue and Customs (HMRC) using the secure service it provides. This software provides automatic calculations, faster processing and later deadlines. There are a number of companies that provide the software needed.
You then need to register to use HMRC Online Services before you can use any of this software to file your tax return online.
You need to watch the deadlines carefully, since the penalties can mount rapidly. If you wish to use this service, then it’s too late for the past fiscal year since the deadline for registration was January 21. If you are already registered, then your return must be received by them by January 31. This year, the support staff for this service will be on strike on that date. If this causes you to miss the deadline because you could not contact them, then the penalty will be waived.
Here too, you may be able to get volunteer help with your tax return if you need it. If your household income is less than 17,000 pounds per year and you are a pensioner you will qualify for free tax advice from TaxHelp for Older People.
This is a service originally provided through the Low Incomes Tax Reform Group (associated with the Chartered Institute of Taxation) but is now provided by Tax Volunteers, an independent organisation, to make free professional advice on personal tax available to older people who could not otherwise afford to pay for it. A team of over 720 volunteers is available throughout the UK.
