It may be a stark realization or a gradual inkling, but as we age, the day may come when it’s clear that assistance is needed to manage daily life. This moment can be both daunting and humbling. Often it arises from physical (loss of mobility due to a fall) or cognitive (increasing forgetfulness) decline, or significant life events like the death of a spouse. At these times, an area that can easily tumble out of control is financial management.
One aspect of financial management that becomes particularly burdensome is preparing and filing taxes. The complexity of tax regulations and the need for meticulous record-keeping can be unnerving for anyone, but especially for older adults who may find these tasks increasingly overwhelming.
Even if you work with a CPA, there is still a mountain of work that falls on you at tax time. Gathering documents can be time consuming and grow confusing if you are mentally declining. We often hear that seniors struggle with finding missing receipts and end up providing their tax preparer with incomplete records.
Add to that, the complexity of filing may leave a senior feeling intimidated by the fear of an audit or facing legal repercussions, even if they’ve done nothing wrong.
So, as you age, how do you minimize stress while ensuring that your taxes are prepared properly and on time? The broad answer is to plan ahead!
Get Organized
The key to maintaining control over finances and taxes is having a plan in place before a triggering event occurs. This includes organizing important documents, setting up a system for managing bills and finances, and identifying trusted individuals who can provide support when needed.
Utilize Technology
Some older adults may struggle with online tools, making it difficult for them to access forms, e-file, or use tax preparation software. But some technology can be an invaluable ally for seniors. Simple tools like digital calendars, reminders, and apps designed for seniors can help manage daily tasks and appointments. Additionally, online platforms can assist with financial management, making it easier to track expenses and prepare for tax season.
Employ Help
Services, like those we provide at Life Managers and Associates, can do the heavy organizational lifting and help keep track of receipts and make sure bills are paid on time and deadlines are met.
The key is advanced planning. Having a proactive approach to aging and addressing potential decline can significantly reduce stress. By creating a plan that includes organizing important aspects of life, embracing helpful technologies and utilizing helpful services, older adults can maintain independence for as long as possible.