Top Tax Tips For Retirement

The end of the year is in sight.  I know it when I see the first holiday decoration… yes the end of the year is near.  Pretty soon I’m going to see Christmas decorations at CostCo before the pool even opens for the summer.  But for now, it’s the time of pumpkins, turkey, mistletoe and taxes!  During the holidays, at my house anyway, I have a football game on – with paperwork and my laptop, preparing and organizing my financial year. As a CPA, I’ve learned a few things over the years that I know will help you with your taxes either before or in retirement.

Tip 1 – Stay In Georgia!

Moving to a state where there is less or no income tax is a retiree’s dream come true!  Our great state of Georgia is in the top ten of overall “most tax friendly states for retirees”.  Whether you like the beach, mountains, farm country or urban downtown Georgia may be the place where… you stay!  Here’s a helpful run down of states and their tax benefits

Overall the most tax friendly states for retirees AK, AL, CO, DE, Georgia, HI, MI, PA, SE AND WY
Have No Income Tax at all! AK, FL, NV, SD, TX WA, & WY
Allow full or partial deductions of federal income on state tax returns AL, IA, LA, MO, MT, ND, OK OR UT


No Sales Tax AK, DE, MT, NH & OR
Full deduction of healthcare expenses on state return ND & OR
No tax on Social Security benefits DC, AL, AZ, AK, CA, DE, GA, HI, ID, IL, IN, KY, LA, ME, MD, MA, MI, MS, NJ, NY, NC, OH, OK, OR, PA, SC, VA, WI
Tax only dividends and interest NH & TN


Tip 2 – Give It Away… If You Can

If it’s within your means and wishes, look at gifting your assets to children, grandchildren or charities… BUT only if this money is truly “extra” and would be more beneficial in paying less taxes than any gains that you might earn.

Tip 3 – Get Your Withdrawals

Once you turn 70 and ½, you must take a yearly withdrawal from your retirement accounts.  These are call required minimum distributions.  Before you grab a withdrawal slip, talk to your retirement advisor, to ensure that you are taking the right amount, taking from the most tax advantageous accounts and by the allocated time frame.

Tip 4 – Be Strategic About Social Security

It may come as a shock to some… but your Social Security is taxed!  Talk with your retirement advisor to make sure that you start Social Security at the most advantageous time for you and that you put aside enough of every SS check to pay your taxes.  It’s a little known fact that you can request that the Social Security Administration withhold those taxes from your checks so you potentially won’t have a high tax burden come April 15th!

Strategically positioning your retirement assets to ensure that you pay the least amount of taxes required is just good sense.  Let us help you make good sense with a complimentary Retirement Tax Review call 770-641-7771.

For details on this and other retirement strategies, tune into “Successful Retirement with Jack Browne” Sunday at 5 pm on News/Talk WSB 95.5 fm and 750 am.

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