As an accountant in Lake Nona, FL I know that when you are an adult and have a proper job, taxes have to be dealt with. No matter how high the amount, you have to pay them within the deadline. But when you retire, your tax liability is reduced and you will probably be paying lesser amounts. Even if you continue to work, this should be the case.
Just to be on the safe side, we recommend that you take your tax situation in your own hands. Hire a reputed accountant Lake Nona, FL, and they will guide you about this. Doing so will ensure that you are paying the least possible taxes.
When you stop working, your income is often less than what you enjoyed before. There may be many income sources, the overall amount is still less. We suggest that you should monitor each of these resources carefully you do not have to pay excessive taxes. Here are some tips for you in this regard. If you have any queries, seek help from a reputed accountant Lake Nona, FL.
Decrease your expenses
This is the simplest way to reduce your taxes. If your expenses are not much, you will not be withdrawing high amounts from your retirement funds, and so your income will be less. You should keep your expenses minimum so that you can remain under the 15% tax bracket. Should this be the case, you will get to enjoy many tax breaks that are for the retirees only.
Pay your mortgage before you retire
Since we talked about minimizing expenses, we suggest that you should pay off your entire mortgage before you retire. Your monthly payments take up a huge portion of your expenses, and when your income levels fall, it becomes even more difficult to pay them. This is why you should pay this beforehand. Doing so will ease up your retirement phase, and you will have more flexibility.
Minimize your social security benefits taxes
The tax rate for your social security income is based on your combined income amount. This is the sum of your AGI, nontaxable interest and social security benefits. Should you file as a married couple and have income levels below, $32,000 you will not have to pay any taxes on this income.
Avoid taxes on your dividends
The tax rate on qualified dividend is zero percent, 15% or 20% depending on your income bracket. If you are in the 15% income bracket, you can avoid these taxes. The same also holds for dividends.
Make sure your Roth 401 (k) and IRA withdrawals are qualified
If your Roth 401 (k) and IRA withdrawals are qualified, there are no taxes on your withdrawals. Talk to your accountant and he will certify if your withdrawals are qualified.
Please note this does not hold for the traditional IRA and 401 (k) plans. Any withdrawals from these are subjected to taxes.
So keep the above in mind, and you will be paying the least possible taxes. Just make sure you are availing all deductions and credits.
If you need more information about our Lake Nona, FL accounting and tax services, please contact us at 407-344-1012. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, Hunters Creek, Lake Nona, Celebration, Winter Park, Windermere, Dr. Phillips, Maitland, Altamonte Springs, Winter Garden, Ocoee, Apopka, Belle Isle, Edgewood, and Oakland FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin numbers, incorporations, and non profit 501c3 tax exempt.