315 West Edmond Road,
Avoid a shocking tax liability in Retirement. Taxes should be estimated, and prepared for, ahead of your retirement. You are not required to withhold taxes from OTRS, Social Security, or some Retirement Accounts which could result in a surprise tax liability when you file your taxes. In this example, these sources of income are not aware of your total income and may not advise you properly on your tax withholding estimates. OTRS is taxable income in retirement along with pre-tax retirement accounts. Taxation of Social Security will depend on your total income in retirement, including ½ of your Social Security income for the calculation. Continue investing in pre-tax retirement accounts, while still employed, to reduce income tax and prepare your budget for retirement income. Don’t forget to consolidate retirement accounts and begin Required Minimum Distributions at age 70 ½.
The chances of an IRS audit aren't that high. And being audited does not necessarily imply that the IRS suspects wrongdoing.
Use this calculator to estimate your income tax liability along with average and marginal tax rates.
Use this calculator to assess the potential benefits of a home mortgage deduction.