Tax Tips Every Retiree Should Know Before Filing

As retirement changes your daily routine, it also changes how you file your taxes. While you may no longer receive a traditional paycheck, your income sources like Social Security, pensions, and retirement withdrawals can still affect what you owe.

Here are a few key tax tips every retiree should keep in mind:

1. Your Social Security May Be Taxable

Many retirees are surprised to learn that up to 85% of Social Security benefits can be taxed depending on your overall income. If you have IRA withdrawals, part-time work, or investment income, your tax bracket may shift.

2. Keep an Eye on Required Minimum Distributions (RMDs)

Once you reach age 73, the IRS requires you to take annual withdrawals from certain retirement accounts. Missing an RMD can lead to steep penalties, so planning ahead is key.

3. Don’t Forget About State Taxes

Every state handles retirement income differently. Some tax pensions but not Social Security, and some tax none at all. Knowing your state's rules helps you avoid surprises.

4. Look for Senior Tax Credits

Depending on your income and filing status, you may qualify for senior-specific deductions or credits that reduce your taxable income.

Need a hand?

Retirement is complicated enough. Your taxes don’t have to be. We’re here to make sure you keep more of what you’ve earned and avoid any costly mistakes.
To schedule a no-cost consultation, visit www.keystone-tax.com or call (715) 835-6022.