Retirement 2022

Forum|Forum|4 years ago
January 26, 2022
3 replies
23 views

I’m retiring in 2022 (April). Can you send me any advise on how to prepare for taxes in my retirement. Any help or link is appreciated!

Cynthiad66

Level 14

Please provide a little more information about you potential retirement. Do you have a pension, 401K etc. What types of income you will have. In the meantime, below is a link from IRS on retiring.

When You Retire by IRS

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

markoaccountAuthor

Level 2

Pension and 401k this year. Then added SocSec starting next year.

MarilynG

Level 15

For this year, your pension and 401K Distributions will both be taxable income (once the standard deduction/itemized deduction is subtracted).

It may be a good idea to have taxes withheld on your pension. If you automatically receive pension income each month, you can ask the payor to withhold 10% Federal Tax for you.

If you only take your 401K distributions 'as needed', also have at least 10% tax withheld on these distributions. Don't take such large amounts as to put you in a higher tax bracket (unless you need to).

You will receive a Form 1099-R to report these distributions in TurboTax. Click this link for more info on How to Enter 1099-R,

Next year, your Social Security is generally not taxable, depending on how much other income you receive.

If your other income (pension and 401K) exceeds $25,000 for a single person, your Social Security will start being taxed.

This link gives more info on Taxable Social Security.

Once you are receiving all three incomes (pension, 401K, Social Security) you will be able to see how much is taxable and adjust your withholdings accordingly.

Remember that you will most likely owe State Tax each year, unless you request the Payor to withhold it for you.

Some retirees take advantage of special credits their state may offer (donating in lieu of taxes, for example).

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"