As a worker, tax season is already hard enough. But when you retire, it gets even harder to do your taxes. In exchange for not getting paid every two weeks, you won't ever have to worry about W-2s, 1099s, or setting up direct deposits.
Pensions, traditional IRA distributions, taxable interest, nett capital gains, and up to 85% of Social Security benefits are common types of taxable income for retirees.
Generally, if Social Security benefits were your only income, your benefits are not taxable, and you probably do not need to file a federal income tax return."
Even though the tax rate doesn't apply to your whole income, every dollar you earn in the new bracket is taxed at a higher rate.
Your "required minimum distribution," or "RMD," is the minimum amount of money you have to take out of your retirement accounts each year when it's tax time.
if you're over 60, you can use a special IRS programme called Tax Counseling for the Elderly (TCE).
Especially if you're in retirement, you need to be extra careful about scammers during tax season.