taxes Archives - DR News - News, Retirement, Finance

Retirement Planning: Understanding Social Security Benefits and Taxes

Dallas, Texas – Many adults are unaware of when they will be eligible for full retirement benefits through Social Security, as highlighted by the results of the Nationwide Retirement Institute 2023 Social Security Survey. In comparison to 2014, a decreasing number of individuals aged 50 and above understand their eligibility status for Social Security benefits based on factors such as an ex-spouse’s record or benefits for spouses and children. Despite Social Security’s nearly 90-year history, …

Social Security Taxes: How to Minimize Your Tax Bill on Benefits

Decatur, Illinois – Retirement planning can be a daunting task for many individuals, especially when it comes to understanding how Social Security benefits can be subject to income taxes. Many pre-retirees are taken aback by the realization that a significant portion of their Social Security income may be taxed, a departure from the experiences of previous generations. With approximately 48% of Social Security recipients already paying federal income taxes on their benefits, this number is …

Tax Break Opportunity: Don’t Miss Out on Retirement Saver’s Credit for 2023 Taxes

Fresno, California – Tax filers have an opportunity to benefit from a tax break known as the retirement saver’s credit for the 2023 tax year. Despite this opportunity, the IRS estimates that only a small percentage—5.7%—of taxpayers claimed the saver’s credit for their 2021 taxes. The retirement saving contribution credit, also known as the saver’s credit, aims to assist low- to moderate-income individuals in offsetting a portion of the funds they contribute to individual retirement …

Social Security Funding Crisis Looms: Proposal to Reallocate Retirement Account Taxes for Solvency

Boston, Massachusetts – Social Security is a critical lifeline for millions of Americans, with nearly 9 out of 10 people 65 and older relying on these monthly benefits. However, a looming solvency crisis has raised concerns about the program’s future. The latest report from the Social Security Trustees predicts a possible 20% reduction in benefits by 2034 if the funding shortfall is not addressed promptly. In a recent proposal, economists from Boston College’s Center for …

Before Moving to Another State, Consider This First

If you’re contemplating a move to a different state, you’ve likely considered state income taxes when making your decision. However, it’s important to also consider the impact of state and local sales taxes on your budget. Four states—Delaware, Montana, New Hampshire, and Oregon—do not impose statewide sales taxes, nor do they have local sales taxes. While lacking a statewide sales tax, Alaska permits cities and towns to impose sales taxes. When factoring in these local …

Planning For Retirement? Don’t Overlook These Five Factors

Forecasting expenses in the distant future, particularly over several decades, poses a notable challenge. As funds are funneled into IRAs or 401(k)s, the prevailing belief often leans toward a hopeful outlook that steadfast financial contributions will pave the way for a comfortable retirement. However, there are certain underestimated variables in the calculation of retirement expenses. Understanding these five factors could aid in cultivating a more accurate and pragmatic retirement budget. Taxes In addition to seeking …

Three Key Components To Maximize Your Retirement Savings

If your working years were spent as an employee, your taxes on wages were pretty straightforward. You worked and contributed to employer-based benefits, and the net was reported to you on a W-2 form, which you used to plug into your 1040 tax form. There is not much wiggle room for reporting that income and paying the associated taxes. The good and the bad of retirement income planning is that you have all the control. …

Taxes: 3 Compelling Reasons Seniors Should File in 2024

Los Angeles, CA – Many seniors may find themselves in the position of not having to file income taxes, especially if their sole source of income for the year is Social Security benefits. In such cases, these benefits are typically not taxable, relieving seniors from the burden of filing a federal income tax return. The decision of whether a Social Security recipient should file federal income taxes hinges on whether they earned additional income throughout …

Educators and State Police Salaries Increased, Social Security Taxes Phased Out by Senators

Charleston, West Virginia – State senators in West Virginia recently passed bills aimed at increasing the salaries of State Police and educators, as well as phasing out Social Security taxes. This move has significant implications for both public safety and the education sector in the state. The new legislation seeks to address concerns regarding the competitiveness of salaries for State Police officers and educators in West Virginia. By raising their salaries, lawmakers hope to attract …

Why HSAs Might Be the Best Thing You’re Not Using Yet

Imagine a world where your healthcare dollars work as hard as you do, where every penny you save for medical needs gets a superhero cape, flying tax-free, growing in strength, and always ready for action. Welcome to the universe of Health Savings Accounts (HSAs)! These aren’t just any ordinary savings accounts; they’re your ticket to tax advantages, investment growth, and a future where you’re in the driver’s seat of your health expenses. If you are …