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Retirees And Taxes


If your'e close to retiring or already retired, your tax situation may have changed from what it was during your working years.

You may even still be working part time.

Below are some tax topics you will want to consider and plan for during your retirement years.

Types of income you may have

A-Earned Income if you're still working and receiving W-2 from your employer or reporting self-employment in you work for yourself.

B-Investment income such as capital gains, dividends, interest, royalties, and interests in partnerships and limited liability companies.

C-Distributions from annuities, IRS's and pension plans (Required Minimum Distribution Rules) --- IRS Publication #575 has detailed information.

D-Social Security and Railroad Retirement Benefits --- IRS Publication #915 has detailed information

E-Rental Real Estate Income

F-Military Retirement Benefits and Pay

G-Bank CD's, checking/money market/saving accounts, and savings bonds interest income.

H-Tax-Exempt investment income.

I-Disability Income Benefits

Withholding And Quarterly Estimated Income Tax Payments-AVOID UNPLEASANT TAX SURPRISES

To avoid an unpleasant tax surprise (and potential IRS penaltioes and interest charges) when you file your tax return, you will need to be sure the correct amount of federal and state (if you live in a state with income tax) income tax is being withheld or sent in during the year on the various sources of taxable income you have.

IRS Publication #505 contains detailed information.

The IRS website www.irs.gov has a tax withholding estimator online tool that will provide guidance on withholding for your specific tax circumstance.

Beneficiary Designations & Estate Plans

You will want to be sure your beneficiary designations and estate planning documents are up-to-date.

Change Of Address

If you have a change of address, use Form 8822 Change To Address to notify the IRS.

You should also notify the U.S. Postal System.

CALL NOW 561-746-1926 or 561-339-8102 if you have any questions or concerns or would like to schedule a FREE, Confidential, No-Obligation Tax-Saving Consultation.