No One is Exempt: Tax Planning
Taxes are a significant expense. No one is exempt from paying taxes (including retirees). "Tax laws about retirement are confusing and constantly changing, but the one certainty is this: Your retirement money will get taxed. This includes Social Security! Far too many people think that because Social Security is a tax, it means the money is already taxed. It's not. People will have to pay taxes on up to 85% of their Social Security benefits. Not understanding that may lead you to believe you have more money saved than you really do." (Quoted from: I’ve Been a Retirement Planner for 17 Years—Here Are the 18 Biggest Mistakes Most People Make (msn.com) ) Common Retiree Taxes Property Tax - Ask your local Property Tax office if there is a Senior Citizen discount. In Anchorage, Alaska the discount is 20%. In Soldotna, Alaska, local property tax is waived. Personal property taxes can be deducted from your federal ...