7 significant taxes you’ll deal with in retirement
Find out 7 taxes in retirement to consider on this episode. Then download your FREE Queer Money Kickstarter, a 9-step Guide to Kickstart Your Journey to Financial Independence.
How to mitigate your tax burden in retirement
The taxes you pay in retirement significantly impact how much income you have to support yourself. And how much you pay varies a great deal based on where you live and how much money you have coming in. So, how can you minimize the taxes you pay in retirement? And maximize the funds you have to enjoy your golden years?
On this episode of Queer Money®, we’re continuing our Retirement 101 series with a discussion of the 7 significant taxes to consider in retirement. We explain the nuances of federal and state income taxes for retirees, describing when social security benefits are taxed and how states tax retirement income differently. We also discuss why property and sales taxes vary by location, giving examples of states that offer exemptions for seniors.
Listen in for insight on the Medicare surtaxes that might impact you and learn how to mitigate your tax burden (and maximize your income!) in retirement.
Listen to get insight on taxes in retirement
Topics covered on taxes in retirement
- The 7 significant taxes you’ll deal with in retirement
- Why withdrawals from traditional retirement accounts are subject to federal income tax
- How to minimize your federal taxes in retirement through strategic withdrawals
- When social security benefits are subject to federal income tax (and how to calculate what you’ll pay)
- How state income tax policies vary and how states tax retirement income differently
- The states that offer tax credits or deductions for retirees, e.g.: senior citizen tax credits or property tax relief programs
- How capital gains taxes are due when you sell an investment for a profit
- How to leverage tax-loss harvesting to minimize your overall capital gains tax liability
- Why property tax rates vary significantly by location and how the assessed value of your property influences how much you pay
- The states that offer homestead and senior citizen exemptions on property taxes
- State variations in sales tax rates and which states offer necessities exemptions on groceries, prescription medications, medical supplies, etc.
- 2 Medicare surtaxes that affect high-income individuals
Resources on taxes in retirement
- New York’s Senior Citizen Homeowners’ Exemption on nyc.gov
- California’s Property Tax Postponement Program on sco.ca.gov
- Tax Cuts and Jobs Act of 2017on Congress.gov
- Additional Medicare Tax on IRS.gov
- Net Investment Income Tax on IRS.gov
- Wealth Builder’s Pyramid
- CreditWise
Connect with David and John
- Debt Free Guys on Facebook
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- Debt Free Guys on Youtube
- Queer Money Facebook Group
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- Subscribe on Apple Podcasts
- Email [email protected]
Watch this week’s episode on taxes in retirement
Previous 3 Podcast Episodes
- Why Arlan Hamilton Wants More Rich Gay People
- What Can I Do with My 401k as a Non US Citizen
- Securing Love: A Guide to Financial Documents for Same-Sex Couples
We’re David and John Auten-Schneider, the Debt Free Guys (www.debtfreeguys.com), and the Queer Money® podcast hosts. We help queer people (and allies) live fabulously, not fabulously broke, by helping them 1) pay off credit card debt, 2) become part- or full-time entrepreneurs and 3) save and invest for retirement.