Tax Planning

Retirees may no longer receive taxable income from an employer, but they will likely receive income from other sources which can be taxed. And while we know what the tax rates are now, we don’t know what they’ll be in 10 or 20 years – or even one year from now. This is why it's important to plan for the tax rates of the future when it comes to taxes. Now vs. Tomorrow Right now, many people are enjoying relatively low tax rates: In 1944, the highest income tax rate was 94%, and in 1978 [...]

They say there’s no such thing as a free lunch, but what about a tax-deductible lunch? While many of your income sources can be taxed, there are strategies to help minimize your overall tax burden before and in retirement. An advantage of going to one professional for all of your financial planning needs is that everything from investment strategies to estate planning works together in one overall plan. Here’s how a financial advisor can help you pursue tax-smart strategies. Manage Investments with a Tax-Smart Strategy Every part of a financial plan is connected, including an [...]

We’ve entered a full year of living with the pandemic, and there have been several events during the year that could affect you this tax season. In April 2020, the CARES Act (Coronavirus aid, Relief, and Economic Security Aid) provided relief to individual Americans and businesses and temporarily altered some parts of the tax code. While this was almost a year ago, the implications for you may extend to this year’s tax season. Here are 5 things to know about COVID and your taxes. Stimulus Checks If you received a stimulus payment in 2020, you [...]

Will your tax burden dramatically decrease in retirement once you stop receiving a paycheck? Maybe not – maybe it will increase. Between retirement account distributions, Social Security benefits, and investments, you may have reasons to review your tax strategy in retirement. We may be experiencing relatively low taxes right now, but the recent change in leadership in Washington and a growing national debt could change that. Let’s look at 3 reasons why your tax burden could actually increase in retirement. Required Minimum Distributions Distributions from traditional retirement accounts such as IRAs, 401(k)s, 403(b), 457, and [...]

Now that President Biden has been sworn in and the Senate is evenly split between Republicans and Democrats, it’s time to consider what tax policy changes could be coming. President Biden and Vice President Harris proposed several tax-increasing measures on the campaign trail, and it’s important to consider how they could affect you. Here are 3 reasons to review your tax strategy. Social Security Base and Income Tax Rates May Increase Right now, only earnings of up to $142,800 incur the Social Security payroll tax. President Biden has proposed also imposing it on earnings of [...]