You are here: Home Finances Taxes For People ... Getting Help ... Summary
Information about all aspects of finances affected by a serious health condition. Includes income sources such as work, investments, and private and government disability programs, and expenses such as medical bills, and how to deal with financial problems.
Information about all aspects of health care from choosing a doctor and treatment, staying safe in a hospital, to end of life care. Includes how to obtain, choose and maximize health insurance policies.
Answers to your practical questions such as how to travel safely despite your health condition, how to avoid getting infected by a pet, and what to say or not say to an insurance company.

Summary

Getting the help you need to prepare your tax return will help you avoid the potential cost and stress associated filing incorrect returns and with being audited. If the IRS questions something on your return, you'll have more confidence in that item's accuracy if you understand your return and used the appropriate assistance in preparing it.

There are many sources of tax-preparation assistance, including software programs you can download from the internet.

If you use a professional to help, there are many types available. It saves time and money to prepare ahead of a meeting with a professional. Regardless of what type of help you use, if you want to be an educated consumer, you need to have a basic understanding of your own return. Once you sign your return, you are responsible its contents no matter who prepares it.

NOTE: Call your tax pro for advice during the year before taking important financial steps.

Getting Tax Information On Your Own

Whether preparing your own return or checking a return prepared by someone else, you can get information and assistance by visiting various websites, using software, taking courses, or contacting the Internal Revenue Service.

Websites

Here's a short list of some of the websites we've found particularly useful in understanding the tax code:

  • www.irs.gov offsite link: Surprisingly, the IRS has a great website. You can download just about all of their forms and publications, read the "Digital Daily" (a newsletter on new IRS and tax code happenings), and access their help page at http://www.irs.gov/help/email.html offsite link, where you can e-mail a question to the IRS to receive an answer in writing. Keep in mind however that even though the opinion is in writing, it's only binding on the IRS to the extent that if the advice is incorrect, you cannot be penalized for following it.
  • www.taxprophet.com offsite link: Lots of information in a fun, easy-to-use format. Be sure to check the "tax class" section, which indexes articles by subject and difficulty.
  • www.1040.com offsite link: This site has easy access to downloadable forms.
  • www.unclefed.com offsite link Downloadable tax forms, preparation assistance, and a good section on audit-proofing your return. The site also includes guides to daily record keeping, and excerpts of IRS guidelines to its agents on selecting audit targets.

Software

With the ever-improving quality of tax-preparation software and decrease in its price, software for home computer use is increasingly common. Most programs walk you through your return step by step, interview you to make sure you avoid overlooking deductions, and have an "audit buster" feature that will tell you how the amount of deductions you claim compares to those of others in your income bracket. Of course, if you have a large itemized medical deduction, it might not mean much if your deductions are out of range. Just be sure to have documentation to support all of your deductions.

If you consider purchasing a tax software program:

  • Read the package carefully to see what features the product includes. You may not need a certain feature (such as the ability to link to your state income tax forms if you live in a state that doesn't have state income tax) or the product might be lacking something you'd find helpful (like a video guide to speak information to you versus your having to read it.)
  • Check each program's operating system requirements to make sure your computer can handle them. Bear in mind that the requirements listed are minimum requirements. To use the program comfortably, you should probably have a computer with a processor at least one notch beyond the minimum requirement.

Two of the more common tax preparation software are:

  • H & R Block's Tax Cut: Available at http://www.hrblock.com/taxes/products/software/index.html. The site also has an option to prepare and file your return online for a fee.
  • TurboTax: Made by Intuit, the publisher of the popular personal financial planning software Quicken, TurboTax is available at http://turbotax.intuit.com/. TurboTax also allows you to complete and file your return online.

Courses

Available courses vary from quick overview seminars to full in-depth courses.

Before signing up for any course, check the skills and experience of the provider.

For an in depth understanding of taxes, you might consider taking a tax-preparation course. H&R Block http://www.hrblock.com/taxes/planning/tax_courses/index.html) has a very comprehensive course covering the fundamentals, but don't expect it to be something to while away an afternoon. It's 66 hours of class time!

More limited courses are available through local community colleges, local disease specific nonprofit organizations, or adult education centers. As filing time approaches, chances are they'll offer at least a seminar (perhaps free of charge) giving you some preparation tips.

The IRS also has a tax-class called "Taxes and You." It teaches participants how taxes affect people and the economy and how to interpret and prepare tax forms. According to the IRS "By learning how to pay only what is owed, managing personal finances will become a lot easier." To find out more about the course, call the IRS office in your area and ask for the Taxpayer Education Coordinator.

Internal Revenue Service

In addition to accessing the IRS' website, you can also call the IRS at 800.829.1040. While advice from a person at the IRS is no defense if the information you put on your return is incorrect, the IRS must waive any penalties resulting from inaccurate advice they give you. When you call, be sure to make a note of

  • The name of the person with whom you speak.
  • The date.
  • The substance of the conversation, including a note on the source of the person's information (such as the title and date of a tax ruling.)

You can also access IRS information on the IRS website (www.irs.gov), or through the following outlets:

  • IRS CD-ROM: Publication 1796, Federal Tax Products on CD-ROM contains all current and prior year tax publications and forms. You can purchase it by calling toll free 877.233.6767 or online at www.irs.gov/cdorders offsite link. It costs less (only $21 including shipping and handling) when ordered through the Internet.
  • TELETAX: You can listen to recorded tax information on approximately 150 recorded topics by calling TeleTax at 800.829.4477. For the directory of topics, press #123. Make sure you have a paper and pen handy to jot down the numbers of the topics you're interested in and notes on the topics themselves.
  • Community Based Outlet Programs: The IRS distributes forms at most Post Offices, Libraries, copy centers and office supply forms, credit unions and even grocery stores.
  • Tax Counseling for the Elderly (TCE): More accurately, this program provides free tax help to people age 60 and older through AARP which offers a Tax-Aide counseling program at more than 10,000 sites nationwide during the tax-filing season. Trained with IRS materials and certified by an IRS examination, AARP Tax-Aide volunteers can help with most tax circumstances faced by low and moderate-income taxpayers. Younger taxpayers are also helped as counselor-time permits. To find an AARP Tax-Aide volunteer, call 888-AARPNOW or visit www.aarp.org offsite link. You do not need to be an AARP member to use this service.
  • Volunteer Income Tax Assistance: The VITA program offers free tax help to people who can't afford paid assistance. Volunteers trained by the IRS help prepare basic tax returns for taxpayers with special needs - including people with disabilities. For information about a volunteer in your area, call IRS tax assistance at 800.829.1040.
  • The IRS even has a publication on ways to get information. It's called the "Guide to Free Tax Services" and is available by calling the IRS or online at http://ftp.fedworld.gov/pub/irs-pdf/p910.pdf. offsite link

Types Of Professionals Who Help Prepare Tax Returns

Depending on your level of knowledge, the time and energy you have available, and the complexity of your situation, you might benefit from the use of a paid preparer. Paid preparers include:

A Tax Attorney:

  • Unless you've had past problems with the IRS or your tax situation is very complicated, you might not need this level professional to help you. If you do, start looking for one by asking at your local disease specific nonprofit organization. Generally, tax attorneys are the option that will cost you the most.

Accountant:

  • An accountant is often the best person to handle your return if your finances are relatively complicated. Particularly accountants with a CPA designation are usually familiar with the nitty-gritty of form filing, and have the credentials necessary to represent you at an audit. Plus, if you already have an accountant, he or she is likely the best person to do your taxes because of his familiarity with your overall financial situation. (See Choosing an Accountant)

Enrolled Agents:

  • Enrolled Agents are tax specialists who have completed rigorous training and passed an exam given by the IRS. Like tax attorneys, they can also represent you with the IRS. However, they're not as expensive. Visit www.naea.org offsite link to locate an enrolled agent.

Financial Planners:

  • Many financial planners do not prepare tax returns, but they are trained to give guidance and explain tax regulations to you. Some larger financial planning offices also employ tax preparers during tax season. (See Choosing a Financial Planner)

Income Tax Preparers:

  • Many people use this title. Their experience can include anything from having prepared only their own returns to experience preparing hundreds. If you use an income tax preparer, check their credentials and experience.

Questions To Ask A Professional You're Considering Asking To Prepare Your Tax Return

Regardless of what type of professional you use, here are some questions that may be useful to ask, depending on your particular situation.

  • Does the person have expertise in your area? For example, has he or she dealt with individuals who receive disability income or claim large medical deductions?
  • If you want to "push the envelope" on your return, how does he or she feel about it? "Pushing the envelope" is seeking to minimize taxes using edgy techniques rather than which have been accepted by the mainstream.
  • How does the person keep up with tax law?
  • How many returns did he or she prepare last year?
  • How much does he or she charge? (Reasonable fees are $75 to $200 per hour, depending on your location and the designation of the preparer. Some retail services charge by the form)
  • Does the person offer any guarantees? What if you get hit with a penalty because of an error they made? Will the person pay it? (Most reputable ones will)

How To Prepare For A Meeting With A Tax Preparer

Before meeting with your preparer, plan to get the most out of your visit by taking the following steps.

Step 1. Review your prior years' returns to review the deductions you've been taking so you can discuss them with your preparer.

Step 2. If you are using a new preparer, bring copies of your federal and state returns for at least the last three years.

Step 3. Assemble all of your income statements, including W-2s and 1099s. Review them for accuracy. Is the amount your W-2 says you earned correct? Does your 1099-R show the proper code for disability as the reason for your retirement plan withdrawal? Your preparer will usually only check for obvious errors, such as the correctness of your Social Security number on the form.

Step 4. Assemble all of your records for deductible expenses. Group receipts and canceled checks in categories that mirror the entries on a tax form, keeping all of your medical receipts, tax payments, interest statements, and charitable contribution records, etc, together.

Step 6. Think about life-changing events since your last return was filed, even if you're not sure they affect tax status. For example, think about divorce, births, adoptions, deaths in family, children who left or returned, etc. A good preparer will usually start interviewing you by asking "what's new since last year?" This question is not just trying to get the latest gossip. Instead, it's the preparer trying to get you to open up on any material changes that may affect your tax situation.

Step 7. Become knowledgeable enough about your tax situation to ask relevant questions.
Reading through the tax material on our website helps provide a basic knowledge base for asking pertinent questions.

Step 8. Assess your own tax temperament regarding judgment calls so you'll have a background on which to make decisions. Are you willing to push the envelope and possibly owe more taxes later? Are you conservative and don't want to take any risks at all even though they are legal?

Tips For Using A Tax Preparer

Don't expect your preparer to add numbers or invent numbers.  If you don't know an exact amount of a deduction, you will be responsible to provide the preparer with a reasonable approximation of the amount.  Be sure it's a number that you can justify.  Don't ask your preparer to just use "something that works." 

Never sign a tax return without reading it carefully.  Ask for an explanation about anything you don't understand. You are ultimately responsible for the truth of the contents of your tax return.