Pay less tax on the benefits you receive
Don’t expect Uncle Sam to go easy on you once you’re retired. The IRS hits you coming and going. In fact, up to 85 percent of the Social Security retirement benefits you collect could count toward your taxable income.
Advice: Use the four strategies detailed below to lower your provisional income (PI), an awkward tally of various income forms. PI is the total of your:
-Adjusted gross income (AGI) as reported on your tax return.
-Tax-exempt interest income.
-One-half of your Social Security benefits.
Example: If your AGI in retirement is $75,000, municipal bond income is $6,000 and S...(register to read more)