I have been taking care of my elderly parent for over a year and it is affecting my finances since I can only work part-time. Are there any resources that can help family caregivers receive financial support?

Caring for an elderly parent can be challenging in many ways, but it can be financially difficult if you must miss work to provide care. Fortunately, there are several government programs and other tips that may help you receive financial assistance while you care for your parent. Here are some options to explore.

Medicaid Assistance

All 50 states and the District of Columbia offer self-directed Medicaid services for long-term care. These programs let states approve waivers to allow income-qualified individuals to manage their own long-term home-care services. In some states, that can include hiring a family member to provide care.

Benefits, coverage, eligibility and rules differ from state to state. Program names also vary: "consumer directed care" in one state, may be called "participant-directed services," "in-home supportive services" or "cash and counseling" in another. Contact your state Medicaid program to ask about its options and requirements.

Veterans Benefits

If your parent is a military veteran, there are several VA programs. The eligibility criteria will vary, but these programs provide financial assistance to family caregivers, including:

• Veteran-Directed Care: This program is available in most states and provides a needs-based monthly budget for long-term care services. The veteran manages their own budget and hires their own caregivers, which many include family members. (VA.gov/geriatrics/pages/Veteran-Directed_Care.asp)
• VA Aid & Attendance or Housebound Benefits: This program provides a monthly payment to veterans and their surviving spouses who receive a VA pension and who either need assistance with activities of daily living (i.e., bathing, dressing, going to the bathroom), or are housebound. (VA.gov/pension/aid-attendance-housebound)
• Program of Comprehensive Assistance for Family Caregivers: This program provides a monthly stipend to family members who serve as caregivers for veterans who need assistance with daily living activities resulting from an injury or illness sustained while in the line of duty. (Caregiver.va.gov/support/support_benefits.asp)

Other Alternatives

Find out if your parent has long-term care insurance that covers in-home care. Long-term care insurance pays primarily for assistance with everyday tasks and does not require a licensed health care professional to provide the services. Some policies will pay benefits for care rendered in an in-home setting. Contact your parent's insurance provider to see if you are eligible to make a claim.

Some additional options for financial support include having your parent pay you for the care you provide if they are financially able to do so. Another option is to have other family members provide help. Check with your family members to see if they would be able to help take care of your parent and allow you to work beyond part-time. Alternatively, your family may be able to pay for your time or other caregivers.

If your family agrees to offer financial support, consider drafting a written contract that details the terms of your work and payment arrangements. A contract sets out everyone's expectations and will also help avoid potential problems should your parent ever need to apply for Medicaid for nursing home care.

Tax Credits

There are also tax credits and deductions you may be eligible for as your parent's caregiver. For example, if your parent lives with you and you are paying at least half of your parent's living expenses, and your parent's gross income was less than $4,400 in 2022, not counting Social Security, you can claim your parent as a dependent on your taxes and potentially receive a maximum of $500 as a tax credit.

If you cannot claim your parent as a dependent, you may still be able to get a tax deduction if you are paying more than half of their living expenses including medical and long-term care costs, and those expenses exceed 7.5% of your adjusted gross income. You can include your own medical expenses in calculating the total. To see which medical expenses you can deduct, see IRS Publication 502 at IRS.gov/pub/irs-pdf/p502.pdf.

Furthermore, if you are paying for in-home care or adult day care for your parent to allow you to work, you may qualify for the Dependent Care Tax Credit. Depending on your income, this credit may be worth as much as $1,050. To claim this credit, you will need to fill out IRS Form 2441 (IRS.gov/pub/irs-pdf/f2441.pdf) when you file your federal return.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living" book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization's official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.

As the tax season moves into high gear, the Internal Revenue Service (IRS) published a series of tax tips for stress-free filing. The IRS asks taxpayers to keep these tips in mind to make certain that their taxes are done correctly and they receive prompt refunds.

1. Good Records — Taxpayers should gather all of their records. A key to easy tax filing is maintaining good records. These records enable taxpayers to take appropriate deductions and credits.

2. Use IRS.gov — The IRS website, IRS.gov, is available around-the-clock. It is the fastest way to benefit from assistance. You can use IRS.gov to file your tax return, pay taxes, receive information about your returns or find answers to many different tax questions. The IRS Services Guide on this website explains the best ways to obtain assistance from the IRS.

3. Helpful Online Tools — IRS.gov includes a wealth of helpful tools. If you have tax questions, use the Interactive Tax Assistant to obtain quick answers. The IRS has upgraded this tool and it generally provides the same answers that would be available over the phone.

4. Reputable Preparer — Over half of taxpayers use a CPA, attorney, enrolled agent or other preparer. You can go to IRS.gov/chooseataxpro and find many qualified preparers. The IRS Directory of Federal Tax Return Preparers also lists professionals and their credentials for filing returns.

5. File Electronic Returns — The IRS Free File program will help you calculate your earned income tax credit, child and dependent care credit and recovery rebate credit. Online software, MilTax, is available for members of the military and certain Department of Defense veterans. There are also limited Free File options available in Spanish.

6. Direct Deposit — By filing an electronic return and choosing direct deposit, you can ensure both an accurate tax return and a rapid refund.

7. Report All Income — Income from all sources is taxable. This includes your IRS Forms W-2, Wage and Tax Statements, IRS Forms 1099, “gig economy” income, tips and other income. All income from any source must be reported. This is true even if you do not receive a formal statement for that income.

8. Unemployment Benefits — If you received unemployment benefits, these amounts are reportable as taxable income on your IRS Form 1040.

9. Review to Avoid Errors — Take extra time to review your tax return. Any taxpayer should understand the basic income, deductions and tax amounts. It is important that you file a complete and accurate return. Your electronic filing is generally the most accurate way to eliminate clerical or math errors. Check to make certain all names and Social Security numbers are correct. You also must recheck your bank account and routing numbers for direct deposit of your refund.

I currently have high Medicare premium surcharges due to my past income. My income has dropped since I retired and I can no longer afford the premium surcharges. Is there a way to appeal my Medicare premium surcharges?

If you are paying higher premiums for Medicare Part B and Part D and you have experienced a life-changing event that affects your adjusted gross income (AGI), you should contact Social Security. After verifying your change in income, Social Security may make an adjustment to your premium which can reduce your monthly cost. Here is what you should know.

Medicare Surcharges

Many retirees do not realize that monthly premiums for Medicare Part B (coverage for doctor's services and outpatient care) and Part D (prescription drug coverage) are based on your modified AGI from two years earlier. To determine your 2023 Medicare premium, Social Security uses the income from your 2021 tax return. In the intervening two years, however, your life can change. Sometimes, those changes are enough to convince Social Security that your Medicare premium should be reduced.

Part B's standard monthly premium in 2023 is $164.90 for individuals earning $97,000 or less or joint filers earning $194,000 or less. Anyone whose income exceeds the thresholds pays a higher premium, known as an Income-Related Monthly Adjustment Amount (IRMAA).

The higher monthly premiums rise steadily from $230.80 to $560.50 through five income tiers. The same tiers apply to IRMAAs for Medicare Part D, with enrollees paying an extra $12.20 to $76.40 per month depending on their income.

About 7% of higher-income Medicare beneficiaries pay a surcharge on their monthly Part B or Part D premiums.

Reasons for Appealing

In certain situations, outlined below, Social Security will recalculate your premiums – known as a redetermination – for Part B and Part D, particularly if the agency based the cost on a tax return that was later amended.

Otherwise, there are seven life-changing events that qualify for a redetermination if they impact your income, including the following: marriage, death of a spouse, divorce or annulment, reduced work hours or retirement, involuntary loss of income-producing property, the loss or reduction of some types of pension income and an employer settlement payment due to the employer's bankruptcy or reorganization.

How to File a Claim

To request Social Security for a redetermination, you must complete Form SSA-44 (SSA.gov/forms/ssa-44-ext.pdf) and include supporting documents, such as the death certificate for a spouse or a letter from a former employer stating that you are now retired. If you filed your federal income tax return for the year that your income was reduced, you will also need to provide a signed copy.

A decision usually takes a few weeks. If your request is approved, Social Security will refund you for the additional premiums paid by adding it to your next benefit payment. If you are on Medicare but have not started collecting Social Security, you receive a credit on a future invoice.

If your request for a redetermination is denied, there are three levels of appeals available to you: the Office of Medicare Hearings and Appeals, the Medicare Appeals Council and the federal district court where you reside.

For more information on the premium rules for high-income beneficiaries see SSA.gov/benefits/medicare/medicare-p

My 74-year-old parent receives a handful of unwanted telemarketing and robocalls and has been cheated out of hundreds of dollars. What tips can you provide to help protect individuals from scam calls?

Scammers are always looking for new ways to trick individuals out of money. In the U.S., phone calls remain the primary way swindlers take advantage of older victims.

The Federal Trade Commission recently found that 24% of adults over age 60 who reported losing money to a scam in 2021 said it started with a phone call – the largest percentage of any method including email, text and mail. To help protect against robocall scams, telemarketing and spam calls, here are some tips and tools you can employ.

Register Numbers

If your parent has not already done so, a good first step in limiting at least some unwanted calls is to make sure home and cell phone numbers are registered with the National Do Not Call Registry. While this will not stop fraudulent scam calls, it will stop unwanted calls from legitimate businesses who are trying to sell something. To sign up, call 888-382-1222 from the phone number you want to register, or you can do it online at DoNotCall.gov.

Cell Phone Protection

Most wireless providers today offer good tools and apps for stopping scam calls and texts. To find out which apps are available within your network, use your preferred online search engine to research which applications work best for your device and service provider.

For additional tools, download a reputable spam-blocking app onto the phone. The apps may be offered by the wireless service provider and can be found in the Apple and Google App store. These apps are free to use, but most carriers will also offer upgraded services that you can get for a small monthly fee. If, however, your parent uses a regional or small wireless carrier that does not offer scam/robocall protection, you can use a free third-party app.

Built-In Call Blockers

Many smartphones today also offer built-in tools that can block spam calls. Some of the newer smartphones make it possible for your parent to completely silence all unknown callers who are not in their contacts list in the phone "Settings."

Silencing all unknown callers is an extreme solution that will stop all unknown callers, but your parent runs the risk of missing out on a few legitimate calls as well. However, unknown callers do have the option to leave a voice message and their calls will appear in the recent calls list. Your parent can also add any number to their contact list to let them through in the future and can block specific reoccurring spam call numbers manually.

Home Landline Protection

To stop scam calls on your parent's home phone, set up the "anonymous call rejection" option. This is a free feature available by most telephone companies, however some may charge a fee. It allows you to screen out calls from callers who have blocked their caller ID information – a favorite tactic of telemarketers.

Call your parent's telephone service provider to find out if they offer this tool, and if so, what you need to do to enable it. If they do not offer it, find out what other call blocking options they do offer.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living" book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization's official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.

I have had several health issues over the past few years. Someone recently suggested that my thyroid might be causing some of my health problems. What are some common symptoms of thyroid dysfunction?

If your thyroid gland is not properly functioning, it can cause many health issues that are difficult to detect because symptoms often resemble other age-related health problems. It is estimated that as many as 30 million Americans have some form of thyroid disorder but more than half are not aware of their condition.

What to Know

The thyroid is a small butterfly-shaped gland located at the base of your neck that has a vital job. It produces hormones, T3 and T4, which help regulate many of your body's activities from how quickly you burn calories to how fast your heart beats. It also influences the function of the brain, liver, kidneys and skin.

If the thyroid gland is underactive and does not produce enough thyroid hormones, it causes the body's systems to slow down. If it is overactive, it has the opposite effect and speeds up the body's processes.

The most common thyroid disorder in older adults is an underactive thyroid, which is known as hypothyroidism. The symptoms of hypothyroidism vary but may include fatigue, unexplained weight gain, increased sensitivity to cold, constipation, joint pain, puffiness in the face, hoarseness, thinning hair, muscle stiffness, dry skin and depression. Some patients may also develop an enlarged thyroid (goiter) at the base of the neck. Older adults with hypothyroidism can also experience memory impairment, loss of appetite, weight loss, falls or incontinence.

For those with an overactive thyroid or hyperthyroidism, symptoms include a rapid heart rate, anxiety, irritability, fatigue, insomnia, increased appetite, weight loss, tremors of the hand, frequent bowel movements, sweating and an enlarged thyroid gland. Too much thyroid hormone can also cause atrial fibrillation, an increase in blood pressure or a decrease in bone density which increases the risk of osteoporosis.

Women who have a family history of the disease have the greatest risk of developing thyroid disorders. Other factors that can trigger thyroid problems include autoimmune diseases like Hashimoto's or Graves' disease, thyroid surgery, radiation treatments to the neck or upper chest and certain medications including interferon alpha, interleukin-2, amiodarone and lithium.

Get Tested

If you are experiencing any symptoms or notice a lump in the base of your neck, ask your doctor to check your thyroid levels. The TSH (thyroid-stimulating hormone) blood test is used to diagnose thyroid disorders. If the initial test result is high, your doctor may order additional blood tests to confirm your levels of T3 or T4.

If you are diagnosed with a thyroid problem, it is easily treated. Standard treatment for hypothyroidism involves daily use of the synthetic thyroid hormone levothyroxine (Levothroid, Synthroid and others). This is an oral medication that restores adequate hormone levels for many individuals.

Treatment for hyperthyroidism can include antithyroid medications such as methimazole and propylthiouracil. It works by blocking the production of new thyroid hormones. Another treatment option is radioactive iodine (RAI). RAI is taken orally and destroys the overactive thyroid cells and causes the gland to shrink. Because RAI leaves the thyroid unable to produce any hormone, a side effect is hypothyroidism. This condition can be easily treated with thyroid medication.

For more information on thyroid disorders, visit the National Institute of Diabetes and Digestive and Kidney Diseases at https://www.niddk.nih.gov/health-information/endocrine-diseases.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living" book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization's official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.

Let's look at the "top five" reasons people give for not owning life insurance.

1. Too Expensive. "I just cannot afford life insurance right now."
2. Confusing. "We looked at proposals from three companies-page after page of numbers. What does it all mean? I haven't the slightest idea!"
3. Too Many Types. "I checked into term insurance, whole life insurance, universal life, variable life, single premium and survivorship insurance. But which one is right for me?"
4. No Trust. "Those big insurance companies claim to have billions of reserve funds. But one of the biggest insurance companies has been on the ropes for months. Who can you trust?"
5. Don't Plan to Die. "Someday when I plan to die, I will consider life insurance. But for now-don't worry, be happy!"

Five Reasons to Own Life Insurance

There are several reasons for you to purchase life insurance. If you were to pass away, the life insurance death benefits could provide resources that are quite important to your family. The various benefits include payment of your funeral and final expenses, paying off mortgages or other debts, living expenses or income for a surviving spouse, inheritance for children and payment of estate taxes.

1. Final Expenses and Funeral Costs. Usually there are medical expenses during the last weeks of life. These frequently will range from $5,000 to $10,000. Your memorial service preparation and costs can also easily exceed $10,000. Total final expenses can often be more than $20,000.
2. Pay Debts and Mortgages. The payment of debts or a mortgage is a one-time expense. Depending upon the amount of your mortgage, this could cost anywhere from a few thousand dollars to many hundreds of thousands of dollars.
3. Living Expenses for Spouse. The largest amount of insurance is typically purchased to provide both economic security and an investment that will add to the spouse's other annual income. A reasonable method is to estimate a 5% return on the investment. For example, if a spouse needed another $25,000 of income over and above the amount paid by retirement funds, Social Security and other earnings, then insurance equal to $500,000 invested at 5% would produce this amount.
4. Inheritance for Children. Permanent insurance is frequently used as a method of providing an inheritance for children. Many parents who make substantial gifts to charity plan to use life insurance as a means of providing additional inheritance for children or other family members.
5. Estate Taxes. If your estate is large, there may be a substantial payment of federal or state estate tax. If you own a family business or other assets that are intended to be transferred to family, then your estate could be subject to estate tax. Life insurance can be an excellent method to provide funds for payment of estate tax. Normally, for larger estates the life insurance is owned by an irrevocable life insurance trust so the insurance itself is not subject to estate tax.

Determining the Life Insurance Amount

A fairly simple way for you to determine the total amount of needed insurance is to add up your one-time expenses, then calculate the amount of insurance invested at 5% necessary to benefit a surviving spouse, children or other family members. For example, if your one-time expenses are $200,000 and your spouse desires additional income of $25,000, then the total insurance would be $700,000. This amount includes $200,000 for expenses and $500,000 invested at 5% to produce the annual income.

More sophisticated calculations are available online. Use your favorite search engine to look for "life insurance needs calculator," and select from the available free public calculators.

How Life Insurance Works

Life insurance started because individuals were concerned that they might pass away and not provide sufficient resources for family. Because young families typically need a substantial fund and lack the ability to save enough in a short period of time, the concept of life insurance was created.

If many thousands of individuals pay premiums and those funds are invested, then a pool of funds will be available to compensate individuals. The life insurance company hires actuaries who determine the probable number of individuals who will pass away in a given year. Especially for younger persons, out of a pool of 100,000 only a few will pass away in a given year. As a result, the insurance company is able to receive all the premiums and invest them in the insurance reserve fund. The earnings and a portion of the funds are distributed each year to pay claims for those who pass away.

The insurance funds are primarily invested in bonds. The insurance company generally receives 1% to 1.2% to cover all of their overhead and costs. The balance is returned through insurance proceeds to beneficiaries.

Life Insurance Policy Categories

Insurance is generally divided into two categories-term insurance and permanent insurance.

Term Insurance

Term insurance is the least expensive type of insurance and is favored by younger people and many financial planners. The term insurance is available with an annual renewable term (ART) or with a fixed payment for five years, 10 years, 15 years or longer.

Because term insurance does not include any investment or cash value, it enables the largest potential policy to be purchased for the least cost. Due to intense competition within the insurance industry, prices on term policies and level-pay term policies have moved lower in recent years.

Some types of term policies also include the ability to convert to whole life or universal life at a future time. If the conversion is elected, then there will be a substantial increase in the premium.

Permanent Insurance

Permanent insurance includes several types. The traditional favorite is whole life insurance, but there are also universal life, variable life and survivorship life insurance.

Whole Life. The traditional whole life policy involves both insurance and a cash value. The premiums are substantially higher than term insurance because the policy will build a savings element or cash value. During the first year, much of the cash value may be used by the insurance company to cover the commission payment to the sales representative, but over time the cash value may increase. The owner of the policy has the right to borrow against the cash value at favorable rates.

Whole life is frequently fixed in terms of premiums paid and death benefit. The insurance company is determining the probable return of its reserve fund and, based on the age and health of the insured person, calculates and commits to a fixed benefit in exchange for a certain premium.

Universal Life. Universal life was created to provide an option for people who would consider purchasing term insurance and invest an additional amount in mutual funds. With universal life, the policy is invested and a cash reserve is built up. The insurance reserve growth covers the cost of the insurance policy. Universal life policies may include flexible options for increasing or decreasing premium payments. Of course, the cash value of the policy will change with a modification of the premium schedule.

Variable Universal Life. If the insured desires to own life insurance but also potentially gain from investments in stocks and bonds, a variable policy may be appropriate. With a variable policy the insured typically is permitted to invest in different mutual funds managed by the financial services company. If the mutual funds increase in value, the policy cash value will increase.

Survivorship Life. For a couple, an attractive option is to purchase a survivorship policy. This policy pays a death benefit after both husband and wife pass away. Because two persons are insured, it frequently is possible to obtain insurance even if one spouse is in poor health. Quite often, this insurance can be purchased at a more reasonable premium because two persons must pass away before the death benefit is paid. It is particularly useful for providing funds to pay for taxes if a business is to be transferred from parents to children after they both pass away.

Life Insurance Beneficiaries

In most estates, life insurance does not pass through the probate process. The insurance policy is a contract between the insured and the insurance company. The person who purchases the insurance has the right to name the beneficiaries. Normally, a primary and a secondary beneficiary are named. It's also possible to divide the insurance policy among several children or other beneficiaries.

A common beneficiary designation is for the spouse to be a primary beneficiary and the children to be the contingent beneficiaries with equal shares. If the spouse were to predecease the insured or they were to pass away in a common accident, then the children would receive the insurance proceeds.

Minor children should usually not be the beneficiaries of a policy. In many states, if a minor child receives a substantial inheritance, a conservator must be appointed to manage the assets. This is quite expensive and also has the disadvantage of transferring the assets to the minor child when he or she becomes an adult.

A much better arrangement is to transfer the policy to a living trust for the benefit of the minor children, or to create a trust and a will for the benefit of the minor children and transfer the policy to the estate to fund that trust.

Prudent Purchase of Insurance

Life insurance is an important decision, and it is helpful to learn about the different types of insurance. Most individuals will also visit with a chartered life underwriter (CLU) or other representative of a financial services company.

The representative can conduct an insurance needs analysis and suggest the appropriate type of insurance. It is helpful for you to do sufficient research to understand the reasons why many individuals choose term insurance or permanent insurance. In addition, the use of online calculators to determine insurance funding will also provide you with a better understanding of the appropriate amount of insurance. The amount of insurance recommended by online calculators can vary greatly, so understanding your probable needs is quite important.

Insurance Company Ratings

Insurance companies are rated by several sources. A.M. Best, Weiss, Moody's and other ratings services are available. You should be certain to ask for the ratings of any company if a representative suggests purchasing a policy from them. It is also easy to go online and do a search for "insurance company ratings" and obtain the actual ratings for most financial services companies.

What are the key factors to consider when retiring abroad? My spouse and I will soon be retiring and are interested in moving outside of the United States.

Whatever your reasons for aspiring to retire abroad – a lower cost of living, a better climate or a desire for adventure – it is important to do your research and learn everything you can about the country you are interested in. Here are some different tips and tools to help you make an informed decision.

Researching Tools

If you are deciding where to retire, use your preferred online search engine to find websites that provide articles and information and the top retirement destinations abroad. Considerations to keep in mind when choosing your location include cost of living, climate, health care, housing, visas and infrastructure.

Once you pick a country or two that interests you, seek out a network with some others who have already made the move you are considering. They may give you tips and suggestions and explain the advantages and disadvantages of day-to-day living in a particular country. Social media platforms can be a good resource for locating expatriate groups.

Before committing, experts recommend visiting the desired country multiple times during different seasons to see whether you can envision yourself living there and not just exploring the place as a tourist. Here are some other factors to consider.

Cost of living: Retiring abroad used to be seen as a way to stretch your retirement dollars, and in many countries it still is a possibility. Depending on where you move, the currency exchange may not be advantageous and the U.S. dollar may not stretch as far. You can compare the costs of living in hundreds of cities and countries by searching for key phrases like "costs of living" followed by the state or country you desire to compare.

Visa requirements: If you want to spend only part of the year living abroad or are willing to move from country to country, most countries offer an easily obtainable three or six-month tourist visa. If you want to set up a more permanent residence abroad you will need to determine the process depending on where you want to retire. To learn more about visa requirements in the countries that interest you, you may want to visit the website for the U.S. Department of State's Bureau of Consular Affairs, Travel.state.gov to get started.

Health care: Medicare and most U.S. health insurance companies do not provide coverage outside the U.S. Check with the embassy (USembassy.gov) of your destination country to see how you can obtain coverage as a foreign resident. Many countries provide government-sponsored health care that is inexpensive, accessible and just as comparable as what you receive in the states.

Most people who retire abroad eventually return to the U.S., so experts recommend paying your Medicare Part B premiums. If you drop and resume Part B or delay initial enrollment, you will pay a 10% premium penalty for every 12-month period you were not enrolled.

Housing: If you are interested in buying a home in a foreign country, it can be complicated. You should talk with your professional advisor or counsel to determine if it may be better to rent first until you are sure you want to permanently reside there.

Money matters: Opening or maintaining a bank account abroad can also be difficult. You may consider establishing a checking account with a financial institution that has international reach. Claiming your Social Security benefits should not be a problem as they offer direct deposit to almost every country in the world. Visit SSA.gov/international/payments.html for more information.

Taxes: You should also research tax rules in your prospective countries and be aware that even if you are living abroad, as a U.S. citizen you will still most likely need to file an annual U.S. tax return – visit IRS.gov/pub/irs-pdf/p54.pdf.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living" book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization's official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.

Individuals with earned income may fund an IRA up to the 2022 limits on or before April 18, 2023. The 2022 funding amount may be the lesser of earned income or $6,000 ($7,000 if the individual is over age 50). The regular IRA contribution amount increased to $6,500 in 2023.

A traditional IRA may be funded this year, but if you are covered by a company plan there are phase-out limits. A single person who is an active participant in a company retirement plan may contribute to the IRA if his or her income is less than $68,000. The ability to contribute is phased out between $68,000 and $78,000 for single individuals or heads of household. A married individual has a phaseout limit from $109,000 to $129,000. However, if the married individual is not an active participant but has a spouse who is an active participant in a qualified plan, the phaseout is from $204,000 to $214,000.

Roth IRAs may also be funded for the 2022 tax year with after-tax cash until April 18. An individual also needs earned income to transfer $6,000 (or $7,000 if you are over 50) into a Roth IRA. The Roth IRA has additional benefits during 2023. Roth contributions may be withdrawn at any time without penalty. If you have taxable income, you may add to your Roth after reaching age 73. Unlike the traditional IRA, a Roth IRA does not have required minimum distributions (RMDs) after age 73. This "no RMD" rule will also be expanded to include Roth 401(k) accounts in 2024.

The Roth contribution is also limited for high-income individuals, regardless of participation in a company retirement plan. The Roth IRA phaseout for a single person is from $129,000 of AGI to $144,000 of adjusted gross income (AGI). The married limit is from $204,000 to $214,000, provided you are filing jointly.

An IRA must be managed by an approved trustee or custodian. Many banks, savings and loans or credit unions are qualified to be IRA custodians. Most financial services firms, including insurance companies, also serve as IRA custodians.

If you contributed nondeductible amounts to a traditional IRA, you will need to track your basis. Your basis is generally your total nondeductible IRA contributions and any additional basis from plans you have rolled over into your IRA. If you make a nondeductible IRA contribution, you must file IRS Form 8606. This will help you track your IRA basis. IRS Publication 590-B is a worksheet that will help you calculate the amount of taxable and nontaxable distribution from this IRA.

What are the IRS income tax filing requirements this tax season? My income decreased in 2022 and I am wondering if I need to file a tax return this year.

The requirement to file a federal income tax return this year depends on how much you earned last year, the source of the income, your age and filing status.

Here is a rundown of the 2022 tax season's IRS tax filing requirement thresholds. If your 2022 gross income – which includes all taxable income, not counting your Social Security benefits unless you are married and filing separately – was below the threshold for your filing status and age, you may not have to file. If it is over, you are required to file.

• Single: $12,950 ($14,700 if you are 65 or older by January 1, 2022).
• Married filing jointly: $25,900 ($27,300 if one spouse is 65 or older; or $28,700 if you are both over 65).
• Married filing separately: Minimum income of $5 at any age.
• Head of household: $19,400 ($21,150 if 65 or older).
• Qualifying widow(er) with dependent child: $25,900 ($27,300 if 65 or older).

To get a detailed breakdown on federal filing requirements or for information on taxable and nontaxable income, call the IRS at 800-829-3676 and ask for a free copy of the "1040 and 1040-SR Instructions for Tax Year 2022." These instructions can also be found online at IRS.gov.

Check Here Too

Be aware of other financial situations that will require you to file a tax return, even if your gross income falls below the IRS filing requirements. For example, if you earned more than $400 from self-employment in 2022, owe any special taxes like an alternative minimum tax or get premium tax credits due to enrollment in a Health Insurance Marketplace plan, you will need to file.

You will also need to file if one-half of your Social Security benefits plus your other gross income and any tax-exempt interest exceeds $25,000. This threshold amount rises to $32,000 if you are married and filing jointly.

The IRS offers an online tax tool that asks a series of questions to help you determine if you are required to file or if you should file because you may be owed a refund. It takes less than 15 minutes to complete. You can access this tool at IRS.gov/Help/ITA. Click on "Do I Need to File a Tax Return?" and it will walk you through an online review. You can also get assistance over the phone by calling the IRS helpline at 800-829-1040.

Check Your State

Even if you are not required to file a federal tax return this year, do not assume that you are also excused from filing state income taxes. The rules for your state may be different. Check the tax filing requirements for your state to determine if you should file.

Tax Preparation Help

If your 2022 adjusted gross income was below $73,000, you may receive free filing help through the IRS at IRS.gov/FreeFile.

For middle and low-income taxpayers who are age 60 and older, contact the Tax Counseling for the Elderly (or TCE) program for free tax preparation and counseling. Call 800-906-9887 or visit IRS.treasury.gov/freetaxprep to locate services near you. You may also use an online search engine to find nonprofits that provide tax return preparation assistance free of charge for qualified individuals.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living" book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization's official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.