Taxes are a constant, no matter the time or place. But that doesn’t mean taxes can’t be adapted or reshaped to offer you a more advantageous position. In many ways, the pandemic has reshaped the tax industry. As Forbes Senior Contributor Megan Gorman states, the tax industry has more on its plate than ever before, dealing with stimulus payments, new PPP loans, and newly invented tax credits that change the way audits are done.
The three keys to successfully lowering your 2022 tax liability are: being organized, being secure, and being timely.
Retired seniors, on a budget, need to understand how to make their 2022 taxes work for them. Being organized is crucial, as there are so many new tax concepts and credits from the two years prior, that your financial situation might have changed. It’ll take time to make sure you know exactly what your situation looks like. Secure your documents to protect against identity theft, and get your taxes organized quickly so you can take your time when filing.
Why It Matters
Social Security is taxed, depending on your situation. Lowering your 2022 tax liability does potentially affect any taxes you may pay on your Social Security benefits. Taxes for your Social Security look at your combined income, which factor in your adjusted gross income (AGI). Smart tax avoidance reduces your 2022 AGI, which means your tax liability is lower and have the potential to pay less in Social Security tax.
With inflation and Medicare costs on the rise, it’s important that seniors keep as much of their money as possible. The Council for Retirement Security is working tirelessly to ensure that seniors get the benefits they’ve earned, so they can focus on their tax liability and not worry about if their benefits will be there.