Income Tax Planning in Retirement
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The Complete Retirement Finance Guide to New Tax Law Changes in 2018
It’s the #1 burning question on my readers’ minds these days… What are the most important individual income tax changes I need to know in the Tax Cuts and Jobs Act of 2017? (It was signed into law in late December) First off, most of the individual income tax changes are in effect from 2018 […]
Tax Reform and Your Retirement Finances
The Tax Cuts and Jobs Act of 2017 has made it through Congress and soon will be signed into law by President Trump. There’s a lot of detail in the new law. It’s the most comprehensive change to the tax code since the Tax Reform Act of 1986. Here, I will review what you need […]
Which States Are the “New Best” Retirement Tax Havens?
Taxes, especially when all types of taxes are added together, are one of the largest expenses of most retirees. State and local taxes are a big portion of the taxes paid, and many people don’t realize the total they’re paying in all those taxes. Of course, some states are considered high-tax states and others are […]
Avoiding The Estimated Tax Trap
Estimated tax payments are a traditional trap for retirees. Most retirees were employees during their careers and had income taxes withheld from their paychecks. They never had to deal with the estimated tax rules and are surprised by the process in retirement. If you expect to owe more than $1,000 in federal taxes that will […]
Minimizing the Most Important Number on Your Tax Return
The most important number on your federal income tax return is on line 37, the last line on the first page of Form 1040. It’s your adjusted gross income (AGI). For retirees, AGI is even more important than for most other taxpayers. Your taxable income used to be the most important line on your return, […]
Finding States That Are Retiree Tax Havens
Taxes, especially when all types of taxes are added together, are one of the largest expenses of most retirees. State and local taxes are a big portion of the taxes paid, and many people don’t realize the total they’re paying in all those taxes. Of course, some states are considered high-tax states and others are […]
How to Minimize Taxes on Annuity Payouts
Annuities offer several benefits when you begin receiving distributions. You receive guaranteed income that lasts for life, no matter how long you live. The insurance company takes on the risks of low investment returns and a long life. You don’t have to worry about scheduling distributions or deciding which assets to sell to raise cash. […]
The Secret to Tax-Free Annuity Distributions
In select cases, annuity owners can take tax-free distributions. Not many people know this, but it can provide a real benefit to people who need long-term care. Typically when distributions are taken from a deferred annuity, the income and gains are included in gross income and taxed as ordinary income. There’s an exception for distributions […]
