10 Things You Need to Know Before Filing Your Tax Return

4. You get a higher standard deduction if you’re 65 or older

The standard deduction reduces your taxable income — and by quite a lot. The standard exemption for single filers and for those who are married but filing separately is $13,850 in the 2023 tax year, up $900 from the 2022 tax year. For married filers, the standard exemption is $27,700, up $1,800 from 2022.

The standard deduction gets even better if you’re 65 or older. Each joint filer 65 and older can increase the standard deduction by $1,500, for a total of $3,000 if both joint filers are 65-plus. In total, a married couple 65 or older would have a standard deduction of $30,700. Single filers 65 or older get an extra $1,850 standard deduction.

5. Charitable contributions can be hard to deduct

One thing that’s not so swell about the standard deduction: It makes it harder to claim itemized deductions, such as charitable donations. A married couple who are both 65 or older would need $30,700 in deductions to make itemizing worthwhile.

In the 2021 tax year, a married couple could deduct $600 of charitable gifts without itemizing. Sadly, that deduction has vanished from the tax code.

6. You can deduct some items without itemizing

You can still take some deductions without itemizing, thanks to above-the-line deductions (known to the cognoscenti as “adjustments to income.”) The line in question is Line 12 on the 1040 form, where you would put itemized deductions if you had any. But if you look above Line 12, you’ll see a host of above-the-line deductions, such as:

• Unreimbursed expenses for teachers
• Business expenses of reservists, performing artists and fee-based government officials
• Contributions to a health savings account (HSA)
• Moving expenses for members of military.
• The deductible part of self-employment tax.
• Contributions to self-employed SEP, SIMPLE, and qualified retirement plans.
• Health insurance premiums for self-employed people
• Penalties on early withdrawal of savings
• Alimony payments (for divorce agreements dated before Dec. 31, 2018)
• Contributions to a traditional IRA
• Student loan interest

7. File electronically to get your tax return faster

The IRS says it usually takes three weeks to get your return if you file electronically. In these days when you can use your bank card in Siberia, three weeks might seem a bit slow. And it is. But you’ll have to wait at least four weeks to get your return if you file by paper. And if your return requires corrections, you might have to wait longer.

8. File early to guard against fraud

If someone has stolen your identity, they can steal your tax return too. All they have to do is file before you do, and your refund check will soon be winging its way over to them. Getting that corrected will take much longer than just filing a return.  

If you’re worried about identity theft or tax fraud, ask the IRS for a personal identification number (PIN). It can help keep a fraudster from getting a new set of tires with your refund.

9. Track that refund

No more lonely treks to the mailbox every day to see whether your refund is there. (Or, in this modern world, forlornly refreshing the screen on your bank’s website every three minutes to check whether you’re suddenly richer.)

A better way: Use the IRS “Where’s My Refund?” tool online. Once you’ve signed up, you can virtually watch your tax return go through the tax system. You can use the time you’ve saved dreaming about what to spend your refund on.

10. Get free tax help

You can get free tax help in a number of places, including:

AARP Foundation Tax-Aide is targeted at older taxpayers with low to moderate income. The free service will be live in early February; you can find Tax-Aide locations through the IRS or through AARP.

The IRS Volunteer Income Tax Assistance (VITA) offers free tax help for taxpayers who qualify at thousands of sites across the country. Typically, those who qualify make $64,000 or less. You can also get free tax software from many different companies, provided your adjusted gross income is $79,000 or less. (Adjusted gross income is your income minus deductions, or “adjustments” to income that you are eligible to take). The companies guarantee accurate computations, and some also offer free state tax return software. You can find the free software through the IRS.