Category: Tax Planning
“Assuming you have income in retirement, you will be subject to at least some income taxes in your golden years.” Once you are retired, the only tax you won’t have to pay will be—can you guess? Yes, payroll taxes. However, there are plenty of other taxes to be paid, advises Forbes in the article that […]
“She recently enrolled in traditional (Parts A, B, and D) Medicare and was hit with huge Part B and Part D monthly premiums. She had no idea why it was so high. After many letters, calls, and meetings with Social Security, she still had no idea.” A 68-year-old woman knew that she had to sign […]
“Planning for your farm’s future has never been more urgent. With one-third of United States farmers older than age 65, it’s estimated that 70% of farmland will change hands in the next 15 years.” Have you figured out who will take over the family farm? Are you or your parents prepared to transition the farm […]
“The personal representative (formerly executor) of the deceased’s estate may be responsible for filing a number of tax returns.” When a person dies, their assets are gathered, their debts are paid, business affairs are settled and assets are distributed, as directed by their will. If there is no will, the intestate laws of their state […]
“Retirees preparing to file their taxes for this year should be aware of a number of common pitfalls, often-overlooked deductions and changes that stem from the tax overhaul two years ago.” Did you know that there is a new federal income-tax form for seniors designed to make filing taxes easier this year, especially for those […]
“Relocating for retirement and trimming the budget line for taxes are among the many tasks preretirees and retirees have on their to-do lists.” There are states where taxes are lower than others. However, if you plan to move to a state that has low tax rates or tax breaks designed to help older residents, make […]
“Granting people gifts makes you and them happy. If you can tailor your generosity so not to pay tax on your largess, you will be even happier.” It’s worthwhile to understand the rules about taxes that might be triggered by your generosity, says Forbes in the article “How To Avoid Taxes When Giving Big-Dollar Gifts“. […]
“What is the size of the average retirement nest egg? It depends on what you mean by ‘average.’” It’s the question we all wonder about, but not very many of us will come out and ask. A 2019 analysis of more than 30 million retirement accounts by Fidelity Investments found that the average balance in […]
“When it comes to your money, be careful who you listen to. Taking advice from an uninformed person can cost you dearly.” We call it “the brother-in-law” effect. Most families have a brother-in-law who likes to think he knows everything, and he’s more than happy to share his wealth of knowledge. Trouble is, most of […]
“Sometimes it can be wise (or just pleasurable) to give your assets away, while you’re still alive.” Traditionally, giving assets away while still living was done in an effort to minimize tax liability at death. However, with the federal tax exemption amount at $11.4 million and growing each year with inflation indexing, federal estate taxes […]
