Taxes and Retirement | $aving to Invest

2013 Business Tax Changes and Credits in Fiscal Cliff Deal Extend Small Business Jobs Act Tax Changes

[2013 Small Business Tax Breaks Extensions] Congress and the Obama administration have reached an agreement that will extend a number of small business tax breaks through 2013 following the fiscal cliff deal which was legislated through the Taxpayer Relief Act of 2012. This includes: R&D credit extended: The Research and Development (R&D) tax credit was extended for another …

Rental Property Tax Changes (Form 1099) and Foriegn Bank Accounts and Assets Disclosure Requirements

Two new tax changes were implemented in recent legislation that may affect a number of tax payers filing 2010 returns in 2011. One affects landlords who now need to disclose all payments made above $600. The other affects people with certain assets outside the US, who now have to formally …

2011 Tax Brackets – Updated IRS Federal Income Tax Tables and Income Thresholds

[Update] – See this article for 2012 and 2013 Tax Rates/Brackets The IRS has released its 2011 Tax Rates and Income thresholds following approval of the Bush-Era Tax Cuts. The latest 2011 IRS federal tax table is shown below with the following key tax changes: Personal exemptions and standard deductions …

A New Economic Stimulus Package With Obama-Bush Tax Cuts and Unemployment Benefit Extensions

[Update – No New Taxes with Tax Extensions Approved] President Obama has now signed into law a bill that covers a temporary extension of all the bush-era tax cuts. The new bill also contains extensions to some of the 2008 stimulus tax breaks, and even has some new tax cuts. With …

2010 Taxes Filed in 2011 – Key Facts and What To Remember

Tax season is almost here and it’s important to think about your tax minimization and management strategies so that you save when filing. I will be publishing more tax related posts over the next few weeks (subscribe), but in the meantime here is a cool Tax Infographic with some interesting …

Bush Tax Cuts Extended As Part of Unemployment Insurance Extension and Payroll Tax Deal

In addition to keeping the current tax rates for all Americans, President Obama announced a compromise plan with the Republican leadership that would extend aid for the long-term unemployed for another 13 months. Other taxes that will be implemented or remain unchanged as part of the compromise include: The payroll …

Year End Tax Planning With 15 Tax Deductions and Credits To Claim

As the year draws to a close it’s always a good idea to review your tax situation and in light of that we have put together a collection of fifteen tax deductions worth considering to lower your overall tax bill. But act soon, because if you wait until next year …

Rollover 401(k)s to an IRA – Why and How

Things are different now. Decades ago when you took a job, you stayed with that company for a long time, often for life. Today, studies show that the average American holds over eight jobs between the ages of 18 and 45. Because of that, many are asking the question during job …

Deficit Reduction Plan: Solve America’s Debt Problem By Cutting Taxes, Social Security, Medicare and Federal Retirement Benefits

To tackle America’s growing national debt problem, President Obama put together a task force earlier this year to look at options on how to cut government spending, implement tax reform and improve the effectiveness of federal entitlement programs. The deficit reduction commission co-chairs (Erskine Bowles and Alan Simpson) put forward a $3.8 trillion deficit-cutting draft plan that calls for discretionary spending to be cut by $1.4 trillion over 10 years, while mandatory spending – including Social Security, Medicare and Medicaid – would be reduced by $733 billion. Taxes would be raised by $751 billion. More specifically:

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401k, 403b, IRA Contribution and Income Limit Changes Officially Released by IRS

[Update] You can now see the most up-to-date 401K/403b, IRA and Roth IRA limits here

The IRS has released the latest 401k, 403b, IRA and other retirement/thrift plan contribution and income limits. With COLA remaining unchanged again this year, 2011 plan limits have also remained largely unchanged for the third year in a row. Income thresholds have marginally increased over last year.

2011 401K and IRA Retirement Plan Contribution Limits Changes

Here is a summary of the main changes with links to more detailed articles:

Five Ways to Make Sure You Get the Most Social Security Income at Retirement – And What You Can Do About It Now

It’s hard to believe that Social Security has been in existence for over 75 years. During that time, however, it has become an income staple for many Americans, with nine out of ten people over 65 receiving benefits. Although Social Security provides benefits for other than just retirement income, those over age 65 depend on Social Security for roughly 40 percent of their income. And, nearly 14 percent of Americans aged 65 and over depend on Social Security for 100 percent of their family income.

The average monthly Social Security check for a retired worker is $1,170. Yet, the need for Social Security benefits increases with age. And, with a trend towards longer life expectancies, it makes sense to try and maximize the benefits you will receive from the program. Particularly, if other retirement sources like 401K, IRAs and Real Estate are returning far less than expected.

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Social Security Tax Rate and Withholding – SSI Limits, Coverage, Retirement Earnings and Benefit Base Limit Changes

Updates – See here for the latest COLA increases by year____________ The Social Security Administration has officially released the Social Security and SSI information against the background announcement that there will be no cost-of-living adjustment (COLA) increase next year. The zero COLA adjustment means the monthly Social Security and Supplemental …

Understanding Your W2 Employer-Employee Tax Reporting Form

One of the most important tax forms you will receive during tax season is a W2. This is the official form that employers use to report employee wages/income, bonuses and other benefits received during the year; along with taxes (federal, state, medicare and social) that were withheld during the tax year. …

Taxes and Social Security on $100,000 Around The World

Saw an interesting graphic in the Economist depicting the approximate amount of taxes (net of offsets) governments around the world collect on $100,000; about the middle class average income level in developed countries. This is compared to the amount of social security (or safety net) the government provides to its …