How to Save Money on Your Social Security Taxes
Most people look forward to the day when they start to receive the rewards for putting all their hard-earned money over the years into social security. However, some people end up with a lot less than they had planned on because they end up paying more taxes on those benefits than they had expected. So what can you do to help lower the tax bill on your Social Security benefits?
For starters you need to know what tax table you fall into. It all depends on how much provisional income you make, which is determined by adding your adjusted gross income, your nontaxable interest and half of your Social Security benefits. If you earn less than $25,000 as a single or $32,000 for a joint return then you won’t have to pay taxes on your SS benefits.
However, as much as 50 percent of your benefits could be taxable if your provisional income is between $25,000 and $34,000 for singles and $32,000 and $44,000 for joint filers. If you surpass those figures as much as 85 percent of your benefits could be taxed.
So in order to avoid these taxes you have a few options. You can give as much as $100,000 tax free a year to charity from an IRA if you are 70.5 years or older. You can also put as much as $125,000 into a Qualified longevity Annuity Contract (QLAC). This amount does not count against you when your required minimum distribution is calculated.
Another move you can make is to withdraw money from a tax-free Roth IRA or you can roll money over from a traditional IRA to a Roth many years before you start collecting SS benefits, which will help you reduce taxes in retirement. Of course, for high net worth individuals it might be very difficult to get below the 85 percent threshold, which is why it’s important to have an overall tax-efficiency plan instead of simply focusing on saving on Social Security taxes.
http://www.kiplinger.com/article/retirement/T051-C001-S003-how-to-limit-taxes-on-social-security-benefits.html
How to Network
How to Network I often speak to groups about employees becoming entrepreneurs. Part of this transformation is increasing revenue by bringing in new clients. One question about finding new clients always comes up; “How do I network?” These employees sincerely want to network, they just don’t know how. In an attempt to give a worthwhile…
Basics of Forming a Corporation
Basics of Forming a Corporation If you have decided that the limited liability and the tax structure of a corporation are right for your business, the next step is actually forming the corporation. The law of the state in which you incorporate will dictate exactly what you need to do, but the steps are basically…
5 Rules of Building Successful Connections
5 Rules of Building Successful Connections Author: Will Corrente Updated: 6/10/2013 For me, connecting with people and connecting with entrepreneurs is one of the most enjoyable aspects of business and entrepreneurship. As a “Connection Optimizer”, I love brainstorming, making introductions, and pointing out potential synergies between friends, colleagues and fellow entrepreneurs. Like all social…
How To Become Employed With 9.8% Unemployment
How To Become Employed With 9.8% Unemployment 9.8% unemployment is the national average. For many states, it is even higher than 9.8%. I live in California and the number has hit double digits. This is true for many other states as well. Regardless of the rate, anyone actively in a job search knows these are…