taxes Archives - DR News - News, Retirement, Finance

Taxable Social Security Benefits Explained: How to Avoid Unexpected Federal Taxes

Monterey, California – Many retirees who began collecting Social Security benefits recently may have been surprised to discover that these benefits are subject to federal taxation. This has left many individuals feeling frustrated, as they feel they are being taxed twice on the same income for the contributions they made over the years. Understanding the tax implications of Social Security benefits is crucial to avoid unexpected tax bills come tax season. One key aspect to …

Taxes on Retirement Savings: New ‘Headroom’ for Pensioners but Millions Face Increase

London, UK – Retirees in the UK are set to receive some welcome news with the announcement of increased ‘headroom’ for retirement savings. However, this positive development comes with a downside, as millions of pensioners may face the prospect of paying higher taxes in the near future. The new measures aimed at providing pensioners with more flexibility in their retirement savings come as a relief for many individuals looking to secure their financial future. The …

Property Taxes: I Get $5,600 a Month in Social Security Retirement Income, But Facing $20,000 Bill – Who Can Help?

Cincinnati, Ohio – A retiree in Cincinnati, Ohio, is facing a dilemma with their Social Security retirement income. Despite receiving $5,600 a month, the individual is concerned about their property taxes skyrocketing to $20,000 soon. This has left them questioning if they will have to resort to living under a bridge due to financial strain. The retiree’s situation highlights a common issue faced by many older adults who rely on fixed incomes during retirement. While …

States Tax Social Security Benefits: How to Avoid Paying Taxes on Your Social Security Money and Which States Tax Benefits

DENVER, Colorado – Social Security beneficiaries received a significant cost-of-living adjustment, the largest in four decades, in 2023. However, this increase in payments might result in a financial hit during tax season. While federal taxes on Social Security income are a known fact for retirees, it’s essential to be aware that some states also impose taxes. Around a dozen states are currently taxing Social Security benefits, but this number is expected to decrease in the …

Social Security Taxes To Be Completely Axed in West Virginia: Governor Jim Justice Proposes Historic Reform

Charleston, West Virginia – In a surprising move, Republican Governor Jim Justice has unveiled a bold plan to completely eliminate Social Security taxes in West Virginia. This proposal, announced during his final State of the State Address on Wednesday, January 10, aims to wipe out all taxes that can be applied to Social Security, following a series of tax rate reductions on state-funded income. The governor emphasized his commitment to tax cuts, stating that the …

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 …