How to Estimate Your Retirement Taxes
You are still required to pay taxes–even in your retirement. By knowing what parts of your income are taxable ahead of time, you can plan your budget accordingly. In order to understand how your retirement factors into your personal tax return in Long Island, NY, it is important to know the kind of income sources you have and how the tax codes affect them. Below are a few things to consider.
While you may have only needed to file your W-2 while you were employed, withdrawing from all of those retirement accounts you contributed to in the past now creates a tax liability. Your taxable income now includes distributions from:
- Social Security
- IRAs and 401(k)s
- Investment Income
- Annuity Distributions
It is essential to know what is taxable in each of your income sources so that you will not be surprised by your return statement come Tax Day. While it can be intimidating to think about taxes in retirement, you are not alone. The accountants at Michael J. Berger & Co. are here to help you file with confidence. You can arrange a consultation with our team in Long Island, NY, at 631.471.3400. Our team is here to help you adjust to your new tax situation.