There is still time to do well by doing good this year, and there are still tax benefits available to retirees who make charitable contributions. Act quickly, though!
There is usually a year-end interest in donating to charity; this motivation does not always disappear upon retirement. Let’s discuss some tax-intelligent ways for charitable contributions by retirees.
Phoenix, Arizona – Many American taxpayers reach the full retirement age of 67 and choose to start drawing Social Security benefits while continuing to work. This decision often results in paying taxes on a portion of the benefits received, but for some, it is a calculated move to maintain financial stability while enjoying the benefits of retirement. For one individual who retired from a full-time job in 2021, the decision to draw Social Security benefits …
2022 is drawing to a close, so it’s time to prepare financially for 2023. This year was challenging for many across the nation. As the markets plummeted, households faced inflation-driven budget cuts, and savings dwindled.
When people consider retirement planning, they often prioritize saving and investing so they can retire with a comfortable nest egg. And that is an excellent starting point. However, it is equally essential to consider how taxes will impact your retirement funds and any other sources of income you may rely on after you reach retirement age.
Inflation is excellent news for those saving for retirement. At least for individuals seeking to maximize their contributions to retirement accounts such as a 401(k), conventional IRA, or 403(b), the following strategies are recommended (b).
The government knows Americans live longer than they did a decade ago, which will be reflected in the required withdrawal amounts from retirement funds at various ages beginning in 2022.
LOS ANGELES, CA – When examining your pay stub, you may notice deductions for Federal Insurance Contributions Act (FICA) taxes, which encompass contributions to both Medicare and Social Security. These deductions represent a mandatory split between employees and employers, totaling 15.3% of gross income. The Social Security tax rate is 6.2%, while the Medicare tax rate is 1.45%. However, for self-employed individuals, the responsibility falls entirely on them to cover the entire amount, including making …
Cleveland, Ohio (AP) — Millions of Social Security beneficiaries across the United States are receiving larger monthly checks following a recent cost-of-living adjustment (COLA), but at the same time, many are finding out that they will now have to pay taxes on those benefits, marking the first time for some. According to a recent survey by The Senior Citizens League, 23% of participants who received Social Security for three years or more said they paid …
London, England – The super-rich in the UK are facing the possibility of leaving the country due to proposed inheritance tax plans by the Labour party. These plans aim to tax trusts, leading wealthy individuals to consider relocating to avoid the projected tax burdens. If implemented, the new tax regulations could have significant implications for high-net-worth individuals and their families who have utilized trusts as a means of estate planning and wealth preservation. These individuals …
Gallatin, Tennessee – In 2025, Americans may face a significant increase in Social Security taxes, affecting millions as the maximum taxable earnings limit is expected to change. The adjustment, set to be implemented in mid-October for the following year, is based on the average wage index by the Social Security Board of Trustees. The predicted increase would raise the taxable maximum to $174,900 from the current $168,600. As a result of this change, employees earning …