Federal and State Personal Tax Deadlines Extended to July 15
Even with the extended personal income tax deadlines, you probably have taxes on the brain right now. You were meeting with your CPA and trying to figure out how to pay your fair share while retaining much of what you earned. It’s a difficult dance with all the tax code updates and changes. Unless it’s your full-time job, it’s hard to ensure you’re getting the best return possible and you’re not overpaying along the way.
If you’re reading this and you’re a resident of Pennsylvania, you’re in luck. Pennsylvania is one of the few states that offers additional tax breaks for the older community, making it a little easier to retire in Pennsylvania.
Retirement Income is one of those things not taxed in Pennsylvania. Pennsylvania is one of just three states that fully exempts retirement income including private and public pensions, Social Security and annuities.
Withdrawals from your retirement accounts are also not taxed which is a huge win for the retiree community. You won’t face a penalty at tax time for using your own money.
Pennsylvania, while offering large tax breaks for seniors when it comes to retirement income, they do fully-tax any additional income. For instance, if you get a part-time job in your retirement to keep yourself busy, expect to pay taxes on that amount.
This type of system allows the senior citizens the chance to capitalize on big tax breaks from their years in a career but still contribute to their state should they bring in additional income. The overarching conversation surrounding tax breaks for seniors is that no one should be taxed right out of their home.
When you’re sitting down to meet with your CPA this year, be sure to have the latest tax info on hand as it pertains to your situation. Tax codes change so frequently, the more knowledge you possess, the better. Everyone wins, particularly you, when you come to the conversation with some insight.
According to Smart Asset, Pennsylvania is very tax-friendly toward their retiree community. Smart Asset also has a handy tool to help you estimate your tax payment (or refund) based on your retirement income, Social Security, filing status and more so you can go into your CPA appointment prepared.
The more you know about your tax codes, the more money you can keep in your pocket, making retirement a little easier on you.