How Can the Wealthy Cut Taxes on Their Social Security Benefits?
Everyone works a lifetime with the idea that at some point they can retire and collect Social Security benefits throughout their so-called “golden years.” However, when it comes to Social Security, this year is not a good time to be a high-income earner. Medicare Part B Premiums are expected to rise for high-income retirees. So, that means if you fall into this category then you should be looking for ways to cut back on your SS benefit taxes. Here are a few ways you can do this.
One step high-income earners can take to reduce their tax bill is to actually delay their benefits. By waiting until the age of 70 to claim your benefits instead of starting at age 62 you can actually increase your benefit by 76 percent. That also means you won’t be paying taxes on any SS benefits for several more years.
Another option is to open a Roth IRA, which allows your money to grow tax-free. The distributions are also tax-free, so you can be a great way to lower retirement income and thus lower your tax bill, as well. Deferred annuities are another possible way to let your money grow tax-free if you own assets that throw off income that you don’t really need. You can also try drawing a little extra by selling a capital asset if your retirement funds aren’t quite sufficient. This allows you to avoid the higher SS benefit taxes but still have enough to live on.
If you are worried about paying too much in Social Security benefit taxes because you are a high earner, then contact GROCO for guidance. Just call 1-877-CPA-2006, or click here.
Thieves Steal Confidential Taxpayer Info Via IRS Website
Just when you thought you were safe to access important and confidential information via the IRS website, it turns out scammers are at it again. According to reports from the IRS, thieves have managed to break into one of the government agency’s website services and steal the confidential information of thousands of taxpayers. In fact,…
SEC Penalizes Deutsche Bank for Questionable Accounting Issues
Accounting mistakes can happen to anyone, whether you’re self-employed, have a small business with just a few employees, or you run a major corporation. However, even when mistakes happen, the consequences can be damaging. When those mistakes, or irregularities, involve large organizations like corporations, banks and financial institutions the consequences can be severe. Recently, the…
Activists, Unions Take Aim at Governor Brown’s Budget Grip
California Governor Jerry Brown has been known to rule the state’s budget with a tough grip. Not much has passed or been voted down without him having a hand in the decision. The governor has fought for tax hikes, put the kybosh on new programs that call for more spending and worked tirelessly on building…
Tax Fraud Getting More Advanced – Are You Prepared?
It used to be that tax fraud was fairly cut and dry. Essentially, it involved an individual or company who, for various reasons, tried to purposely fudge on their taxes, either by understating their income or by trying to completely skip out on filing a return. Those practices certainly still exists, despite the IRS’s constant…