Senior Citizen Tax Debt Relief

Seniors have options for tax relief.

Tax relief for senior citizens comes in a variety of forms which includes, but is not limited to, counseling, credits, and compromises with the IRS. Knowing your options will aid you in determining which tax debt relief option is best for you.

Tax Credit

If you qualify, the Credit for the Elderly or Disabled can reduce your tax liability. You can use Schedule R and the accompanying instructions in IRS Publication 524 to determine if you qualify. To claim the credit, complete Schedule R and attach it to your income tax return. Enter the amount from line 24 of your Schedule R on line 30 of your form 1040A or line 53 of Form 1040.

Counseling

If you need help with your forms, contact the IRS at [phone] for the location of the nearest Tax Counseling for the Elderly (TCE) office near you. TCE can provide valuable tax advice, as well as file your income tax return for you.

Tax Settlement

Elderly taxpayers who are unable to pay tax debt owed due to a reduction in income could qualify for an Offer in Compromise via the Doubt of Collectibility category. In order for you to qualify to qualify, you must show that, based on your income, expenses, and assets, you'll never be financially able to pay your tax debt in full.

References

• Internal Revenue Service: Publication 524-Credit for Elderly and Disabled
• Internal Revenue Service: What Is an Offer In Compromise
• Internal Revenue Service: Do You Qualify for an Offer In Compromise