Consider Taxes and Choose Your Retirement Location Carefully
Last week we discussed the best and worst states to retire in when it comes to taxes. So what kinds of factors actually play a role in coming up with those numbers? Choosing a place to call home when you retire is important and there are many factors that can play a role in where you end up. However, speaking strictly in regards to taxes, these are the top four taxes to consider when you’re ready to hang it up and retire.
Of course, your federal income tax will be the same wherever you end up so that is not relevant, but these four other taxes are:
- State income tax – most states charge income tax, but the rates vary. There are seven states, however, that don’t charge any state income tax, which could greatly reduce your retirement taxes.
- Social Security tax – the next tax to look at is the SS tax. There are 13 states that will tax your Social Security benefits; so avoiding these states will reduce your tax bill.
- Sales tax – all but five states have a sales tax but every state’s sales tax rate will differ, so that is another important tax to keep in mind when you retire.
- Property tax – your property tax will also affect your total tax bill so keep this tax in mind when choosing your final home destination, as well.
The bottom line is you should enjoy retirement, no matter where you live. So make sure you choose your location wisely and consider all of these different taxes and how each will affect your personal situation before you make your choice.
Tax Preparation Help: 5 Tax Deduction Myths
Tax Preparation Help: 5 Tax Deduction Myths By Ronn Espy There are a wealth of tax deduction myths, rumors and plain old wives tales during every tax season. Many opt not to get professional tax preparation help and file their own taxes based on misinformation, only to regret it later when the IRS comes calling.…
Is The IRS Above the Law?
Is The IRS Above the Law? By Alan Olsen, CPA, MBA (tax) Managing Partner Greenstein Rogoff Olsen & Co. LLP Have you ever wondered how the IRS truly operates? Have you ever contacted someone from the IRS with a tax problem or question and discovered that the person on the other end of the line…
IRS Updates Procedures for Reopening Closed Cases
IRS Updates Procedures for Reopening Closed Cases IRS issued Rev. Proc. 2005-32 On May 20, 2005, the IRS issued Rev. Proc. 2005-32, which updates procedures for reopening closed examinations under §7605(b) and describes when a case is deemed closed after examination. It also provides a nonexclusive list of contacts and actions by the IRS that…
Year-End Tax Tips For Investments
Year-End Tax Tips For Investments By Glenn Dahlke Yes, its that time of year again, time for every financial column to drum into your head all the year-end investing tax tips. It’s the equivalent of your list to Santa. You either take care of it by year-end or you take your chances. Consider yourself warned.…