6 Tax Filing Tips for Retirees

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.

Remember: You technically still might have income.

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."

But if Social Security is all you have, you (probably) don't have to file.

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.

Be aware that you may be in a new tax bracket.

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.

Remember to take your RMD.

 if you're over 60, you can use a special IRS programme called Tax Counseling for the Elderly (TCE).

You could be eligible for free tax advice.

Especially if you're in retirement, you need to be extra careful about scammers during tax season.

Watch out for scammers.

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