TITLE

Survey of Total State Taxes and Planning Implications for Retirees

AUTHOR(S)
Raghavan, Kamala
PUB. DATE
January 2009
SOURCE
Journal of Financial Planning;Jan2009, Vol. 22 Issue 1, p56
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
• Common wisdom states that retirees often move to sunny locations like Florida and Nevada, both of which are among seven states that have no income taxes, making them attractive to retirees. But income taxes are only part of a retiree's total tax burden. A variety of other taxes imposed by these states can add up to a hefty tax load, possibly making a state with income tax more favorable to a retiree than a state with no income tax. • Changing economic conditions make state and local government tax rates fluid and subject to changes. A financial planner can provide invaluable service by matching the client's post-retirement assets, life expectancy, interests, and lifestyle to a state's total tax burden along with its amenities, and providing the client with rational decision alternatives. • This paper reviews the significant components of the retiree's tax burden, and suggests broad guidelines for the client's discussion with a financial planner to maximize income during retirement years while considering family and health-related issues. • State tax issues covered in this paper are personal income taxes, taxing of Social Security benefits, taxation of private-sector income, state and municipal sales taxes, property taxes and property tax breaks often provided for older taxpayers, inheritance and estate taxes, and tax breaks for 529 college savings plans.
ACCESSION #
36321492

 

Related Articles

  • Payroll tax reduction extended. Gray, Michael // Michael Gray, CPA's Tax & Business Insight;Mar2012, p9 

    The article reveals that the 2 percent reduction in employee social security tax from 6.2 percent to 4.2 percent has been extended for the rest of 2012.

  • Super different.  // BRW;6/15/2006, Vol. 28 Issue 23, p31 

    The article delineates the difference between Australia's tax system and those elsewhere in the world. The Australian system is distinct from the rest of the world due to the absence of social security contributions. Instead of pensions being paid by income tax on workers, Australians contribute...

  • Section 30A wage credit to increase too. Carmona, Jose L. // Caribbean Business;12/21/2000, Vol. 28 Issue 50, p46 

    Reports that the maximum wage credit allowed under the Puerto Rico Internal Revenue Code Section 30A will increase per employee in 2001. Increase in the Social Security tax wage base; Lack of effect on the way an employee's Social Security tax is calculated.

  • Three ways to cut your FICA tax. Powe, Michael J. // Money;Jun2000, Vol. 29 Issue 6, p178 

    Offers information on reducing the burden of withholding taxes on salaries under $76,200. The advantage of contributing the maximum amount to 401(k) plans; How to save tax money on employer subsidies for transit to work or parking; The tax benefits of flexible spending accounts.

  • Social Security Fight Has A Few Rounds Left To Go. Morgan, Tom // Business Journal (Central New York);4/1/2005, Vol. 19 Issue 13, p29 

    Comments on the Social Security reform implemented by the Bush administration in the U.S. Decision of the Congress to raise taxes on wages and Social Security; Contention of the author that to soften the impact of the taxes, bigger earners will have higher taxes than the smaller earners; Debate...

  • Retirement Income Replacement Ratios: An Update. Palmer, Bruce A. // Benefits Quarterly;1994 Second Quarter, Vol. 10 Issue 2, p59 

    This article presents the findings of the third periodic study of retirement replacement ratios conducted by researchers at the Center for Risk Management and Insurance Research, Georgia State University and the Alexander and Alexander Consulting Group. The 1993 study reveals continuing changes...

  • Wage base used in computing Social Security tax will increase in 2001. Carmona, Jose L. // Caribbean Business;12/21/2000, Vol. 28 Issue 50, p46 

    Reports on the Puerto Rico Social Security Administration's (SSA) raising of the wage base for computing the Social Security tax in 2001. Increase in average total wages; Taxes levied on employers, employees and self-employed workers by the Federal Insurance Contributions Act (FICA); Maximum...

  • Confusing and Often Unfair.  // New Mexico Business Journal;Oct2001, Vol. 25 Issue 8, p37 

    Provides information on the taxation system of New Mexico. Taxation on tribal lands; Gross receipts and compensating tax; Personal income tax. INSET: Tax Facts.

  • Stop Soaking the Not-So-Rich. Revell, Janice // Money;Jun2009, Vol. 38 Issue 6, p108 

    The article discusses various taxes that are designed to tax wealthy people that the author feels also impact middle class people. Taxes that are discussed include the social security tax, the alternative minimum tax (AMT) and capital-loss carry-forward taxes. The impact that these taxes are...

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics