Name: Tax Tips for Retirees - TurboTax Tax Tip Video
Uploaded: 2020-02-26T03:20:42.000Z
Duration: 1 min 39 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

Hello I'm Nick from Turbo Tax, with some helpful tax tips for retirees.

Now that you're retired, the last thing on your mind is likely to be your federal

income tax. But there are still ways you can minimize the amount you owe each year.

It's likely you receive monthly Social Security benefits, but did you know that it's possible

for the IRS to tax some of those payments? This only happens if the other income you

receive is too high. Generally, if all your other income plus 50% of your social security

benefits exceed a certain threshold for your filing status, then you will end up paying

some tax on your benefits. If you do pay some income tax on those benefits,

there are other things you can do to limit the impact of those taxes.

One option is to make some tax-exempt investments to replace some of the taxable ones you own.

This way you reduce your overall tax and can possibly keep your Social Security benefits

in the lower tax brackets. An example of this type of investment is state and local municipal

bonds. The interest you earn on those bonds are exempt from federal tax, and in some cases

it may also be exempt from state income tax. One other way to reduce your tax liability

is by claiming a tax credit for the elderly and disabled, should you qualify for one.

As long as you're at least 65 years old, file a joint return if married, and meet other

income requirements, it can be a valuable tax reduction tool.

For more tips and information that can help you get your taxes done smarter, visit TurboTax.com