MONEY Taxes

For Some Retirees, April 1 is a Crucial Tax Deadline

If you recently reached your 70s and aren't yet drawing money from your tax-deferred retirement accounts, you need to act fast.

For anyone who turned 70½ last year and has an individual retirement account, April 15 isn’t the only tax deadline you need to pay attention to this time of year.

With a traditional IRA, you must begin taking money out of your account after age 70½—what’s known as a required minimum distribution (RMD). And you must take your first RMD by April 1 of the year after you turn 70½. After that, the annual RMD deadline is December 31. After years of tax-deferred growth, you’ll face income taxes on your IRA withdrawals.

Figuring out your RMD, which is based on your account balance and life expectancy, can be tricky. Your brokerage or fund company can help, or you can use these IRS worksheets to calculate your minimum withdrawal.

Failure to pull out any or enough money triggers a hefty penalty equal to 50% of the amount you should have withdrawn. Despite the penalty, a fair number of people miss the RMD deadline.

A 2010 report by the Treasury Inspector General estimated that every year as many as 250,000 IRA owners miss the deadline for their first or annual RMD, failing to take distributions totaling some $350 million. That generates potential tax penalties of $175 million.

The rules are a bit different with a 401(k). If you’re still working for the company that sponsors your plan, you can waive this distribution rule until you quit. Otherwise, RMDs apply.

“It’s becoming increasingly common for folks to stay in the workforce after traditional retirement age,” says Andrew Meadows of Ubiquity Retirement + Savings, a web-based retirement plan provider specializing in small businesses. “If you’re still working you can leave the money in your 401(k) and let compound interest continue to do its work,” says Meadows.

What’s more, with a Roth IRA you’re exempt from RMD rules. Your money can grow tax-free indefinitely.

If you are in the fortunate position of not needing the income from your IRA, you can’t skip your RMD or avoid income taxes. You may want to reinvest the money, gift it, or donate the funds to charity, though a law that allowed you to donate money directly from an IRA expired last year and has not yet been renewed. Another option is to convert some of the money to a Roth IRA. You’ll owe income taxes on the conversion, but never face RMDs again.
Whatever you do, if you or someone you know is 70-plus, don’t miss the April 1 deadline. There’s no reason to give Uncle Sam more than you owe.

 

MONEY Taxes

Does My Teen Really Have to File Taxes?

150326_FF_TEENTAXES
Erik Dreyer—Getty Images

April 15 is rapidly approaching, and you know you have to file a tax return, but does your teen have to?

You know you have to file a tax return, but does your teen? The deadline is rapidly approaching, and he or she may — or may not — have received forms relating to income last year.

Chances are, your teen does not have to file. John Scherer, a certified financial planner with Trinity Financial Planning in Middleton, Wis., said they do not have to file if they have investment income of less than $1,000 or earnings of less than $6,200.

If your teen is under those thresholds and worked a job that withheld taxes, though, he or she would want to file to get those withholdings refunded. So encourage your teen to collect those W-2s, even if it seems like a lot of trouble for a refund that doesn’t sound terribly impressive (and yes, he or she might have multiple W-2s, if there were paychecks from a summer job, a part-time job and a holiday job). If your child is not required to file, the April 15 date does not apply, but it’s still a good idea to dig out those forms, if for no other reason than to emphasize they are important papers and should not be disregarded.

And even if W-2s weren’t issued (as for babysitting), it’s smart to keep — or to begin to keep — a record of earned income, Scherer said. This can be as simple as keeping a log and making corresponding deposits to a bank account. Those earnings won’t owe income tax so long as they add up to less than the standard deduction ($6,200 for 2014). (Update: Keep in mind, if your teen earns $400 or more and they are not employed by someone else, this income is considered self-employment income and they must file a tax return and pay self-employment taxes, warns Burton M. Koss, an enrolled agent with Cortes & Baker LLC.) Where the record of earnings can come in handy is with establishing a Roth IRA. While we don’t expect most teens to want to save all they earned for retirement, the limit is 100% of earnings or $5,500, whichever is smaller. So a parent or grandparent could put money into a Roth on the teen’s behalf, as long as the teen has earned income. And the young person’s retirement savings will not be counted against possible financial aid for college, but will have more years to increase in value.

So it’s smart to file, even if it’s optional and little or no refund is coming. Your teen might get a little tax money back, assuming it was withheld, and he or she should also get a glimpse of what taxes are and how they work — and some early practice at keeping records for tax purposes. Parents would be wise to “walk through it with the kids,” Scherer said. “For most folks, taxes are one of their biggest expenses they have.” And learning early that planning ahead can save real money can only help teens later.

More from Credit.com

This article originally appeared on Credit.com.

MONEY Scams

IRS Agent or Scammer? 5 Signs You’re Being Conned

fishing hooks being dropped into fishbowl with goldfish
Adam Gault—Getty Images

A nasty con is on the rise involving fake IRS agents who call up potential victims and demand payment for back taxes.

Scammers who pretend to be IRS agents and harass unsuspecting citizens into paying debts they don’t owe have been quite busy over the last two years. According to the Associated Press, some version of this scam has resulted in victims being conned out of $15.5 million since 2013.

Only a small percentage of people who are targeted actually fall for the ruse, which in the past has involved criminals claiming to be federal agents named, rather uncreatively, Steve Martin or Jack Dawson—the actor-comedian and Leonardo DiCaprio character in Titanic, respectively. Roughly 3,000 have given money over to the con artists, out of more than 366,000 that have been contacted via phone over the past two years. But some of those who are victimized have been bilked out of big money—to the tune of more than $500,000 in one instance.

In order to avoid being victimized yourself, bear in mind a few key points:

Don’t trust caller ID. As the FTC noted last summer, scammers have ways of “spoofing” caller ID to make it look as if the call is originating from a government agency.

The IRS doesn’t call people up out of the blue. The IRS almost always contacts people about unpaid taxes first by mail, not by phone. So if someone claims to be a government agent and says that you owe money, or perhaps that you’re eligible for a refund or some prize, look up the agency’s official number and dial it up to check if what you’re hearing is legitimate. Most likely, it isn’t.

Don’t give out or confirm info over the phone. Fake agents may have some of your personal info—even the last four digits of your social security number. Don’t help out the imposter by confirming this info or giving out any other information over the phone.

IRS agents won’t ask for a specific form of payment. Scammers usually want payments made via prepaid debit cards or wire transfers because they’re difficult to trace. A genuine IRS agent never asks for immediate payment over the phone, never requests payment information over the phone, and never specifies a certain form of payment for unpaid taxes.

The IRS won’t threaten you with arrest or deportation. Or losing your driver’s license, your job, or your business. Scammers have made all of these threats and more in order to get victims to pay up swiftly. But again, if you truly owe the IRS money, you will first be notified by mail, not with a phone call. And certainly not with a harassing phone call.

As Timothy Camus, a Treasury deputy inspector general for tax administration, explained to the AP, “If someone calls unexpectedly claiming to be from the IRS with aggressive threats if you do not pay immediately, it is a scam artist calling.”

If you do get a call that you suspect to be a scam, hang up the phone right away, and then report the incident at the taxpayer administration hotline (800-366-4484). File a complaint with the FTC as well.

TIME Social Security

Flawed Social Security Data Says 6.5 Million in U.S. Reach Age 112

Social Security I.D. Cards
Duckycards—Getty Images Social Security Cards

In reality, there are only 42 people that old worldwide

(WASHINGTON D.C.) — Americans are getting older, but not this old: Social Security records show that 6.5 million people in the U.S. have reached the ripe old age of 112.

In reality, only few could possibly be alive. As of last fall, there were only 42 people known to be that old in the entire world.

But Social Security does not have death records for millions of these people, with the oldest born in 1869, according to a report by the agency’s inspector general.

Only 13 of the people are still getting Social Security benefits, the report said. But for others, their Social Security numbers are still active, so a number could be used to report wages, open bank accounts, obtain credit cards or claim fraudulent tax refunds.

“That is a real problem,” said Sen. Ron Johnson, R-Wis. “When you have a fake Social Security number, that’s what allows you to fraudulently do all kinds things, claim things like the earned income tax credit or other tax benefits.”

Johnson is chairman of the Senate Committee on Homeland Security and Governmental Affairs, which plans a hearing Monday on problems with death records maintained by the Social Security Administration.

The agency said it is working to improve the accuracy of its death records. But it would be costly and time-consuming to update 6.5 million files that were generated decades ago, when the agency used paper records, said Sean Brune, a senior adviser to the agency’s deputy commissioner for budget, finance, quality and management.

“The records in this review are extremely old, decades-old, and unreliable,” Brune said.

The internal watchdog’s report does not document any fraudulent or improper payments to people using these Social Security numbers. But it raises red flags that it could be happening.

For example, nearly 67,000 of the Social Security numbers were used to report more than $3 billion in wages, tips and self-employment income from 2006 to 2011, according to the report. One Social Security number was used 613 different times. An additional 194 numbers were used at least 50 times each.

People in the country illegally often use fake or stolen Social Security numbers to get jobs and report wages, as do other people who do not want to be found by the government. Thieves use stolen Social Security numbers to claim fraudulent tax refunds.

The IRS estimated it paid out $5.8 billion in fraudulent tax refunds in 2013 because of identity theft. The head of the Justice Department’s tax division described how it’s done at a recent congressional hearing.

“The plan is frighteningly simple — steal Social Security numbers, file tax returns showing a false refund claim, and then have the refunds electronically deposited or sent to an address where the offender can access the refund checks,” said acting Assistant Attorney General Caroline Ciraolo.

In some cases, she said, false tax returns are filed using Social Security numbers of deceased taxpayers or others who are not required to file.

The Social Security Administration generates a list of dead people to help public agencies and private companies know when Social Security numbers are no longer valid for use. The list is called the Death Master File, which includes the name, Social Security number, date of birth and date of death for people who have died.

The list is widely used by employers, financial firms, credit reporting agencies and security firms. Federal agencies and state and local governments rely on it to police benefit payments.

But none of the 6.5 million people cited by the inspector general’s report was on the list. The audit analyzed records as of 2013, looking for people with birth dates before 1901.

President Franklin D. Roosevelt signed the Social Security Act in 1935, and the first old-age monthly benefit check was paid in 1940.

Many of the people cited in the inspector general’s report never received benefits, though they were assigned Social Security numbers so spouses and children could receive them, presumably after they died.

The agency says it has corrected death information in more than 200,000 records. But fixing the entire list would be costly and time-consuming because Social Security needs proof that a person is dead to add them to the death list, said Brune, the agency official.

Brune noted that the inspector general’s report did not verify that any of the 6.5 million people are actually dead. Instead, the report assumed they are dead because of their advanced age.

“We can’t post information to our records based on presumption,” Brune said. “We post information to our records based on evidence, and in this case it would be evidence of a death certificate.”

“Some of those records may not even exist,” Brune added.

Nearly all the Social Security numbers are from paper records generated before the agency started using electronic records in 1972, Brune said. Many of the records contain errors, with multiple birthdates and bits of information about different family members.

“We did transcribe paper records into the electronic system and over time that information’s been purified,” Brune said.

“But our focus right now is to make sure our data is as accurate and complete as it can be for our current program purpose,” said Brune. “Right now, we’re focused on making sure we’re paying beneficiaries properly, and that’s how we’re investing our resources at this time.”

MONEY Taxes

How to Avoid Audit Red Flags When You Change Up Your Taxes

red flag
iStock

A break from how you normally file your taxes can lead to costly mistakes—and attract the attention of the IRS.

Taxes are one of the few constants in life, but what happens when you change the way you do your return?

People move or get divorced, tax preparers pass away. There is always the lure of do-it-yourself—the number of people using tax software to file, like Intuit’s TurboTax, increases by 6% annually, according to the Internal Revenue Service. And then there is the reverse exodus of people who have decided their financial lives are too complicated, and they need to hire a professional.

With so many changes, consistency takes a beating. If you are on the wrong end of it, you could end up drawing the dreaded attention of the IRS.

Here are the items that can trip up taxpayers when they switch the way they do their taxes:

1. Mileage logs

When John Dundon took over his father’s tax business after he passed away last July, the biggest surprise for the Denver, Colorado-based tax preparer was that road-warrior clients were not keeping mileage logs.

“Boundaries erode all the time between practitioner and taxpayer,” Dundon says. Laziness seeps in disguised as trust, and years later, there are simply no logs.

Dundon tells his father’s crossover clients they need a renewed zeal for paperwork—get a GPS device or a smart phone app for next year. For 2014 taxes, he is asking clients meticulously through calendars and maps to sort it out.

2. Rental property depreciation

Depreciation is a deduction you can take on certain assets, like rental property. The tax impact can be pretty significant, especially if you are trying to off-set income like rent.

The dollar amount is determined by a formula you follow year-after-year, called a depreciation schedule, which could run almost the full course of a 30-year mortgage.

“You definitely need that schedule. You can try to guess at it, and you’d probably be okay, but you wouldn’t be doing it 100% right,” says tax preparer Anil Melwani, who runs his own firm, 212 Tax & Accounting Services, in New York.

If it was not done at all previously or done wrong? You’ll need to file an amended return to correct it, Melwani says.

3. Carryforward losses

The IRS allows taxpayers to take $3,000 in losses a year on investments, and to carry forward those losses indefinitely until the amount is all used up. But use it or lose it—meaning, if you miss a year because you forget, you can’t pick it up in the following years as if nothing happened.

Harvey Bezozi, who has his own firm in Boca Raton, Florida, has a new client this year who will likely have to file amended returns because she skipped over this with her last preparer.

4. Home office

Taking the home office deduction? Stay consistent with the square footage of your home office. The best way to do that is to get out your tape measure and only include space that you use exclusively for work.

If there’s a pingpong table in the middle of the basement study you’re trying to claim, that’s a no-go, says Dundon.

5. Life changes

There is a lot that a new tax preparer—or a tax software autobot—can learn about you by just looking at your past returns, but their questionnaires will not catch everything. If you have a baby, buy a house, get divorced, have income in a foreign country or have job-hunting related expenses, you’ve got to speak up.

But things can get missed when people do not know enough to know what they are missing. That’s what drove a DIY-type like Ben Jaffe into the hands of a paid tax preparer this year.

Jaffe, a 29-year-old who works in PR in New York, bought a house in 2014 while his wife had a baby. He made the switch away from tax software because, he says, “I wanted an expert opinion to verify that I was doing everything right.”

One hour and $500 later, he’s feeling confident: “It saved me a lot of time and stress.”

MONEY ID Theft

How To Get Your Money Back If Your Tax Refund Is Stolen

Tax Refund check
B Christopher—Alamy

To protect your identity—and get the refund you're due as quickly as possible—follow this guide.

Did a thief beat you to filing your own taxes this year?

You’re not alone. More and more Americans are finding that someone has taken over their identity to file a fraudulent tax return in their name and collect the refund check.

In the first half of 2013, 1.6 million taxpayers were hit by tax identity theft, compared to just 271,000 in all of 2010, the Treasury Inspector General for Tax Administration reported. And the IRS paid out $5.8 billion in stolen tax refunds in 2013, according to a study by the General Accountability Office (GAO).

The increased use of electronic filing means that fraudsters are able to file a greater number of returns more quickly and with little or no documentation. This year, the number of suspicious electronic returns has been so great in some states that in February TurboTax, one of the largest tax prep software providers, temporarily suspended processing all state tax returns until it could block users from filing unlinked state returns, which are returns filed without a federal return.

Unfortunately, the number of false returns may not be coming down any time soon. A GAO report just named the IRS’s ability to address tax refund fraud and identity theft as one of the government’s top weaknesses.

If you’ve received a notice from the IRS stating that more than one return has been filed in your name, or if you believe your identity has been used fraudulently, here’s what to do:

1. Report the Fraud Quickly

Call the IRS Identity Protection Specialized Unit at 800-908-4490 right away so that they can begin the process of verifying your information. You’ll also need to fill out an identity theft affidavit, or Form 14039, so that the IRS can place an alert on your account. If your state tax return was filed falsely as well, contact your state revenue agency (for your state’s hotline, check out this list).

Also report the theft to the police. While law enforcement is unlikely to investigate, many government agencies and credit bureaus require an official theft report to help you solve the fall-out.

2. Gather Your Proof

“When you call the IRS about the ID theft, have old copies of your tax returns from the past two or three years out. It will move your case faster,” says Valrie Chambers, a CPA and Stetson University accounting professor.

By providing additional information that the IRS can check against, you strengthen your case that your return is the legitimate one. For example, an ID thief is unlikely to know that you got divorced two years ago and stopped filing jointly, but this fact can easily be checked by the IRS, giving your filed return more credibility.

While you’re searching for those forms, also pull out your driver’s license, birth certificate, passport, two recent utility bills, and, if you’re married, your marriage certificate. You’ll need to mail in copies of all these documents as well as your police report in order for the IRS to verify your tax return and rule the other one fraudulent, says CPA Art Auerbach, who has worked with tax refund theft victims.

3. Pick Up More Protection

Once you report the fraud and fill out the affidavit, the IRS should issue you a personal identification number to provide another layer of security. You’ll need to submit this PIN along with your Social Security number when you file any tax form going forward so that the IRS knows to carefully check over your account. As an identity theft victim, you’ll get a new PIN every year.

If you live in the tax fraud hotbeds of Florida, Georgia, and D.C., you can apply for a PIN without having been an ID theft victim, thanks to a new IRS initiative. To get the six-digit number, you need to register and verify your identity online. You can sign up on the IRS website.

4. Alert the Credit Bureaus

“If a thief had enough information about you to file a false tax return, he could have also opened new credit card accounts or taken out a loan in your name,” says CPA Troy Lewis, chairman of the American Institute of CPAs’ tax executive committee.

Set up free fraud alerts with the three major credit reporting bureaus, Equifax, Experian, and TransUnion. These alerts, which last 90 days but can be renewed, warn potential creditors or lenders that you are an identity theft victim and that they must verify your identity before issuing credit.

You can go a step further by placing a credit freeze on your files, which instructs the credit agencies to prevent new creditors from viewing your credit score and report. With a police report, it’s free; without one, it can cost as much $10, depending on your state.

A freeze will keep you from accessing instant credit too. If you need to apply for a loan, you will need to give the agency permission to thaw your data, and in some cases you’ll pay a fee to lift the freeze, which can take a few days.

5. Check Your Credit Report

You are entitled to a free copy of your credit report from each of the three agencies. Check them carefully for unauthorized activity. Look at your history as well as recent activity. Just because you were first alerted to the problem through a false tax return does not mean that’s where the ID theft started.

If you see errors in your report, such as wrong personal information, accounts you didn’t open or debts you didn’t incur, dispute those errors with each credit agency and the fraud department of the businesses reporting that inaccurate information.

6. Change Your Passwords

In the past, most thieves collected data about a taxpayer and then created an account at a tax preparation software site to file a false return. But Intuit, the parent company of TurboTax, says that in the past 18 months it’s seen fraudsters shift to taking over people’s existing accounts.

Thieves know that people use the same password at multiple websites. When usernames and passwords are compromised in a data breach, a thief could use them to test for a TurboTax account and file in your name.

If you have an online account at a site like TurboTax, make this password unique from any other passwords you use online. Follow this guide to make it as secure as possible. If you use your tax prep password at your bank or any other site with personal information, change that password too.

7. Be Patient

The IRS says a typical case of ID theft can take 180 days to resolve. And even after you’ve cleared up this year’s tax mess, tax and credit fraud can be a recurring problem.

When a thief beats you to filing, the IRS will flag your legit return and process it manually, scrutinizing every detail to figure out which return is authentic. This means your refund could be delayed for months.

The IRS will always pay you your refund, regardless of whether it already paid it out to a fraudster. If your tax fraud case hasn’t been resolved and you’re experiencing financial difficulties because of the holdup with your refund, contact the taxpayer advocate service at 877-777-4778.

TIME Scams

The New Way Scammers Are Fleecing America

Sending Text Message On Mobile Phone Nokia 3310
Alamy Seemed like a smart phone at the time.

That call you got probably isn't actually from the IRS

The FTC released its annual list of the top consumer complaints, and while there are some perennial gripes therein, there are also some new things consumers should watch out for.

Among the more than 2.5 million complaints, not including do-not-call complaints, identity theft once again takes the top spot—a position it’s held for 15 years running now. In 2014, 13% of the complaints the fielded by the FTC, state and federal agencies, consumer protection and other non-governmental groups pertained to identity theft.

Right behind it, debt collection complaints held onto the number two spot with 11% of the complaints, but a new entrant entered the third spot: so-called “impostor” scams.

Impostor scams are when someone calls and pretends to be from a government agency or other authority, usually the IRS, but not always. These scams often revolve around tax-related topics. The FTC says complaints about fake “IRS” agents was almost 24 times higher last year than in 2013.

“IRS employees won’t call out of the blue and threaten to have you arrested or demand specific methods of payment,” says Jessica Rich, director of the FTC’s Bureau of Consumer Protection. If the real IRS needs to get ahold of you about a tax bill, they know where you live — they’ll do it by mail.

Military personnel appear to be at a higher risk for impostor scams. While it was the third most common complaint overall last year, it was the second-highest complaint for military consumers.

“Whether it’s pretending to be the IRS during tax season, or making false promises of a lottery win, scammers are increasingly sophisticated in their efforts to deceive consumers,” Rich says.

Members of the military also seem to be targeted to a greater degree by shady educational outfits: Although complaints related to education were pretty far down the list among the general population, they ranked seventh-highest among members of the military.

Where you live also makes a difference in the likelihood that you’ll be targeted by scammers. The FTC says the most identity theft complaints come from Florida, Washington and Oregon, while the most fraud complaints come from Florida (again), Georgia and Nevada.

Nationwide, more than half of fraud complaints originate with a scammer calling the victim; about a quarter of the contacts are initiated by email. Fraud pertaining to government documents or benefits was the most common kind, making up almost 40% of complaints. Prepaid cards and wire transfers were the most common ways scammers separated victims from their money.

MONEY Taxes

How to Get Free Tax Help When the IRS Won’t Answer Your Call

150302_FF_IRSTaxHelp
iStock

Budget cuts have made getting through to the agency by phone tougher than ever. Here's where else to turn.

Excruciatingly long holds on the Internal Revenue Service’s help line this year mean that taxpayers need to find better ways to get their questions answered.

The problems start with the fact that the IRS has cut nearly 12,000 positions as its budget has fallen by an inflation-adjusted 17% since 2010.

New health insurance requirements are also creating more paperwork. People with health coverage through their employers or other groups will just have to check a box, but those with coverage through Affordable Care Act insurance exchanges, or who are applying for an exemption, will have to submit more forms.

In addition, the IRS changed the rules on how repairs to tangible property are treated, requiring accounting changes for businesses, including landlords, that own real estate and equipment.

As there will likely be a last-minute crush of work for professionals as affected taxpayers belatedly learn about the changes, it’s best to start as early as possible, says Melanie Lauridsen, tax technical manager for the American Institute of Certified Public Accountants.

The National Taxpayer Advocate earlier this year predicted that about half of all hotline calls wouldn’t be answered and average wait times would stretch beyond 30 minutes.

Compare that to fiscal year 2004, when the IRS answered 87% of calls with average wait times of less than three minutes.

Tax professionals, who have their own dedicated hotline with the IRS, aren’t being spared either. One CPA recently spent two hours and nine minutes on hold before his call to the tax practioner’s hotline was answered, and his experience isn’t unusual, said AICPA’s Lauridsen.

“It’s going to be a horrible filing season for everyone,” she said. “As we’re getting deeper into the filing season, the wait times are getting worse.”

And taxpayers who get through to the IRS have no guarantees their question will be answered, Lauridsen added. This year helpline staff are limiting their answers to “basic” tax law inquiries, and won’t answer any tax law questions at all after the filing season ends.

Some free alternatives to the helpline exist, including:

1. The IRS website. Not only does the IRS site have every form and publication you’re likely to need, but the site also handles some of the most common tasks, including paying your tax bill, setting up a payment plan, getting a transcript of your return, and checking on the status of your refund (which you also can do with the agency’s mobile app, IRS2Go). The site features an interactive tax assistant, which uses an interview format to answer some of the most common preparation and filing questions.

2. Walk-in centers. You can make an appointment to get free face-to-face help at one of the Taxpayer Assistance Centers. As with the IRS helpline, only basic tax law questions will be answered and only until April 15. The centers no longer will help you prepare a tax return.

3. Tax software. The IRS’ Free File program allows people with incomes under $60,000 to use popular tax preparation software such as H&R Block, TaxAct and TurboTax for free.

The programs offer an interview format and built-in error checkers that catch math and other common mistakes.

4. Volunteer sites. The AARP Foundation’s 35,000 Tax-Aide volunteers helped 2.6 million people file their returns last year, said Dorothy Howe, the program’s assistant national director. The program is designed to help low- to moderate-income people, but there’s no age limit, Howe said.

“Even though this is being offered by AARP, you don’t have to be over 50 and you don’t have to be retired,” Howe said.

What you do have to have is a relative straightforward return, Howe said. A 1040 with some itemized deductions is fine. If you’re a day trader with a ton of investments or a small business owner, you should hire a tax pro.

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