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Understanding AARP Tax Preparation Services and What This Guide Covers

AARP offers information about tax preparation options for people aged 50 and older, with a particular focus on those with lower to moderate incomes. This guide provides educational information about how AARP's tax preparation resources work and what you might find helpful when dealing with tax filing. It's important to understand that this guide is informational only — it does not file taxes for you, determine whether you should file, or complete any government transactions.

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AARP partners with the Internal Revenue Service (IRS) through a program called Tax-Aide to provide information about tax preparation. The guide walks through the basics of this partnership, what kinds of information AARP provides, and how you can learn more about tax filing options. The information covers topics like common deductions, credits you might not know about, and how to organize your tax documents before speaking with anyone about your return.

Many people over 50 find taxes confusing because the rules change, and there are many different situations to consider. Your tax situation might involve retirement income, Social Security benefits, investments, or changes from the previous year. This guide helps explain some of these topics in plain language so you can better understand your own situation when it comes time to file.

Practical takeaway: Read through the sections that match your situation — for example, if you have retirement income, focus on that section. Take notes on questions you want to ask a tax professional, and gather your documents before filing time arrives.

Who AARP Tax Services Are Designed For

AARP Tax-Aide services focus on serving people 50 and older, especially those with straightforward tax situations and lower to moderate income levels. The program provides information about filing options rather than offering a one-size-fits-all solution. Understanding who these services work best for can help you decide whether the information in this guide matches your needs.

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The guide explains that Tax-Aide works well for people whose income comes from employment, pensions, Social Security, or modest investment earnings. If your tax return involves significant business income, complex investment situations, rental properties, or other complicated matters, you may need different resources. The guide helps you understand the difference between a simple tax situation and one that requires more specialized knowledge.

Age 50 is the starting point for AARP membership, though many people continue using these services well into their later years. The guide includes information about how life changes — retirement, widowhood, health events — can affect your taxes. Someone who retired at 62 faces different tax questions than someone still working full-time. Someone who lost a spouse has entirely different filing options than a married person. The guide addresses these different situations.

The guide also explains income thresholds. While there's no absolute cutoff, AARP's resources work best for people with straightforward situations. If you earned $100,000 last year from a job but had no other complications, that's different from someone with $30,000 from Social Security plus $20,000 from a pension plus $15,000 in investment income. The guide helps you understand which category you fall into.

Practical takeaway: Before using AARP's resources, honestly assess your situation. Write down your income sources and major expenses. If your return looks relatively straightforward, these resources may help you understand your options.

Common Tax Credits and Deductions for People 50 and Older

Many people over 50 don't claim deductions and credits they're entitled to. The guide provides information about several tax breaks that apply specifically to this age group or commonly apply to people in this life stage. Understanding what these are helps you gather the right information before filing.

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The Earned Income Tax Credit (EITC) isn't just for younger people — it may be available to people 50 and older who still work and have lower to moderate income. The guide explains how this credit works and what income levels matter. If you work part-time, have irregular income, or returned to work after retirement, this might apply to you. The guide shows examples like a 55-year-old who works as a consultant earning $20,000 per year, or a 62-year-old who works seasonal jobs.

The Standard Deduction increases at age 65. This means you can exclude more income from taxes just by reaching that age. The guide explains the actual dollar amounts and how this changes year to year. If you're 64 and close to 65, the guide helps you understand how this upcoming change affects your planning.

The Saver's Credit encourages lower-income people to save for retirement. If you contributed to an IRA or your employer's retirement plan and your income is below certain thresholds, you might claim this credit. The guide walks through who qualifies based on income and filing status.

Medical and dental expense deductions may be available if you have significant healthcare costs. The guide explains the threshold — you can deduct medical expenses that exceed a certain percentage of your adjusted gross income. For someone with expensive medications, dental work, or medical equipment, this might matter.

The guide also covers property tax deductions, charitable contribution documentation, and how to track expenses for home office use if you work from home. It provides information about organizing receipts and keeping records that support your return.

Practical takeaway: Go through each credit and deduction mentioned in the guide and mark the ones that might apply to you. Keep receipts and statements for these items throughout the year, not just in tax season.

How to Organize Your Documents Before Tax Time

One of the most practical sections of the guide covers document organization. Whether you file your taxes through AARP's resources or elsewhere, having organized documents makes the process faster and more accurate. The guide provides a checklist of documents to gather and tips for organizing them.

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Start with income documents. You'll need all W-2 forms from employers, 1099 forms for self-employment or contract work, and statements showing investment income. For retirement income, you need statements from pension providers, annuity companies, and the Social Security Administration. The guide explains what each form shows and why you need it. For instance, a 1099-R shows retirement account distributions and how much tax was already withheld, which matters significantly for your return.

Deduction records matter just as much as income documents. If you itemize deductions rather than taking the standard deduction, you need receipts and statements for medical expenses, property taxes, charitable donations, and state and local taxes paid. The guide recommends keeping receipts throughout the year rather than scrambling to find them in March. It suggests a folder system — physical or digital — where you store these items as they come in.

The guide includes a detailed section on charitable giving documentation. The IRS requires different proof depending on the amount donated. Small cash donations need just a receipt from the charity. Larger donations or non-cash gifts require more detailed documentation. The guide explains what records charities provide and what you should keep.

Investment records also deserve attention. If you sold stocks, bonds, or other investments, you need records showing what you paid for them (cost basis) and what you sold them for. The guide explains how to find this information if your broker doesn't provide it clearly, and why this matters for calculating gains or losses.

The guide also covers organizing medical records if you're claiming healthcare expenses, property records if you own a home, and records related to dependent care if that applies to you. It recommends creating a checklist specific to your situation and checking items off as you gather them.

Practical takeaway: Start organizing documents now, not in February. Create a system — whether a physical file folder or digital folder on your computer — and place tax-related documents there as they arrive throughout the year.

Understanding Social Security and Pension Income on Your Taxes

For many people 50 and older, a significant portion of their income comes from Social Security or pension benefits rather than wages. The tax treatment of this income is different from regular employment income, and many people don't understand how it works. The guide provides detailed information about taxing retirement income.

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Social Security benefits may or may not be taxable depending on your total income. The guide explains how to calculate "combined income" — which includes your adjusted gross income, any tax-exempt interest, plus half of your Social Security benefits. If this combined income exceeds certain thresholds, a portion of your benefits becomes taxable. The actual threshold amounts depend on your filing status (single, married filing jointly, or other categories