Retiree Income Tax

Hey this is Mike Swick from if not for God podcast our show stories of hopelessness turned in a hope your chosen Truth Network podcast is starting to just seconds. Enjoy it.

Sure, but most of all, thank you for listening and for choosing The Truth Podcast Network this is Truth Network welcome to finishing well brought you by Cardinal God, certified financial planner long shot of sewing alternate financial planner helping families finish well for over 40 years of finishing well will examine both biblical and practical knowledge to assist families in finishing well, including discussions on managing Medicare IRA long-term care life insurance and investments and taxes. Now let's get started. Finishing well, finishing well is a general discussion and education issues facing retirees guide.com are no advisors on trial CFP insurance this show does not offer investment products or investment advice welcome to finishing well, a certified financial planner Hans Schild and very fun today may not sign in front of the out but it's gonna be. I assure you it's retiree income tax and so as we enter into this I thought was really cool that we think about just the idea of knowledge in general right in and there's this proverb it's actually in Proverbs 18 verse 15 it says the heart of the prudent giveth knowledge and the ear of the wise seek knowledge and so it's kind of cool that is is coming with wisdom in these different anointing is to Christ God, because Christ means anointed one, so the anointing is that he got in Isaiah 11 of the anointing's of wisdom and understanding, and counsel and might and knowledge and fear the Lord and delight in the fear the Lord.

So these come in really really handy when were headed into retirement will try to be good stewards of what the Lord is given us, and I think today so you can find extremely helpful when it comes to the standpoint of knowledge, but I wanted to break down the word knowledge for you and Hebrew emotions ever looked at it, it would be pronounced.and the letters are pictures in Hebrew and I thought I would paint this picture for you consent to give you a new insight into the word knowledge is from a biblical standpoint so when we look at those letters the first letter is that the eyelids and that dilated normally means humility like the first verse in the Dollard section 119 Psalm says my soul cleaves to the dust quickened me according to thy word. In other words, this is this idea of total humility and when you think about that, from a standpoint of knowledge is if you think you know the stuff you know your United again in a knowledge delivered from from the point of humility like I need and this idea of cleaving is about to do that.so I'm I'm cleaving to try to understand something I don't understand but you first got admit you don't know and and then the second and third letters from us at the same time because her so-called second letters and ion which has to do with your eyes and seeing especially with your heart and the last letter is a top which means the truth. So here's this idea of this of this sold its cleaving to the dusting humility, trying desperately to learn through their eyes. They want to see the truth okay and with that truth again is is is is applied with wisdom from the first anointing, then we can now be good stewards of what God is given us. So as we head into this idea of retirement income retiree income tax bonds taken from their talk about today is the and how it applies to retirees as opposed to during your working so I know many people like put up on their talk about retiree videos, you know, that will affect the thing great thing that that's true, but in working with retirees taxes play out very differently. I then they did during your working want to do is jump right in the most important money coming in most retiree. Check even very well-to-do people they get real interest in their 70s and 80s because it is really for most of them. The only regular check they got, the and you know if they have asked that which any of them do.

And you know the asset you can certainly draw the make the. In addition to your social security check and that the most people live with the Social Security check is really the main check and couple in retirement.

They got you up so I think the first thing we want talk about federal income tax on Social Security and Social Security is all you have and that you're only eight, maybe other small or very little impact on your social security check. So that's the way to go fact that people are forced to live through their own lack of saving or maybe something bad happened. For whatever reason, people have their only check come in early to check the need to live up that they're knocking to paint federally. Okay. And so the account the calculation for taxes and federal taxes on.

Check is going to be determined by your getting your taxable income other than those here. So what we do in our planning a lot. We tried it depending on how much income people are drawing out people that have a large amount of debris and they have need to do a large dual art and indent the social security check predicate worked in their picture and it gets really those people that are drawing down their retirement saving pretty substantially. Those people basically 85% of their social. Check is detectable know at the highest rate but believe that 15% of people of high income tax. Now that involve people in between. So would be some percentage of both.

Jack was taxable and then the rest of this tax for one to make that point that we have social security and then you have other taxable income people is the other taxable way in the amount of that plugged into this formula to determine whether you pay taxes or how much that you pay on your post regarding right so that those of us who plan on working off since you said he did die in the saddle and continue to work as long as we possibly can then are so security comes in.

The good news is that money begins to come in when you take it you did you get 15% of it with no tax write about that other 85% is going to go into your total income to establish which taxable income is correct. Go somebody continued like in your case you delayed till 7070 still working and you start drawing your check.

What would I like to recommend you know will determine the track on the social security much.

It is, and then 15% will be tax-free. 85% of the account. Maybe another 20 or 25% of the total will be gone to federal taxes, and zoning gets right down to it, your public benefit and that 60% you could just because they further putting it in a saving coated in a law IRA, so that you know you go into in year seven of the point your horse to retire and you're going to have not only that large. Check on the delay but she will also have always built up tax-free thing right that you can draw so so, the federal income tax applies. But nobody is percent of people that are forced to live on their taxes are going to go way down live on exclusively or close now dating back though like a North Carolina with a lot of our listeners are there North Carolina. There is dating back, but they don't chat. There's no no tax on your slope.

No stating that the matter how much money though.

You 5 1/2% that is on your regular rate, but is not your such a sale is when I started my Social Security even though I'm working and mine comes with both of the federal taxing it. My Social Security income up my work income, but my social security and comes to be absolutely because I'm a North Carolina tax-free. I like that 12 that the others stating Colorado, Connecticut, and Minnesota during Montana, Nebraska, Rhode Island Utah Vermont Virginia though 12 day there and it included either all or so they all do it differently. There. I like your words you also owe stating that you're retired or not.

So you know people have a tendency to avoid those that come from a surprise immunity but they're all your life that that's 12 people need to take that into consideration and we certainly do we do playmaker people all over the country are radio broadcast podcast you to work it called from everywhere. Okay so the next thing I thought about when you're 65+ you get an increase standard deduction, banner deduction for all married couple is 25,100 out element. Let me repeat that $25,100 I think.

Banner deduction. I used to look at the standard deduction that was only for people with really low income because I would be way more and I still have some pretty natural house payment, taxes, and the Lieut. charitable contribution and all I but I still think banner deduction of 25,001, as do many people. And then when you're 65 and over all about to get an additional 2800 2800. Make almost 28,000 that is is federal tax free and most state that having a compact but guard you get this thing made near the federal 28,000 you get to deduct up your debt. You have a conductance are not right off the top. What we don't tend to jump in here because we can go to the breaker to remind you that the crisis, the show is brought to you by Cardinal Tide.com that's where you find all the stuff for Hans's email addresses, phone number, all those things you can get up with him as well as his book the complete carnal guide to planning for and living retirement. Again we are reminded that his YouTube channel is Cardinal advisors YouTube so just for Cardinal advisors a measure to see a whole board with all his information about taxes, wonderful videos and when we come back we'll get more into retiree income tax for 2022. Be right back. Hans and I would love to take our show on the road to your church and Sunday school Christian or civic room. There's a chance for you to advance the kingdom through financial resources by leveraging Hans expertise and qualified charitable contributions veterans aid and attendance IRA Social Security care and long-term care.

Just go to Cardinal guy.com and contact Tom to schedule a live recording of finishing well at your church, Sunday school or civic contact on the Cardinal guy.that's carnal guide.com welcome back to finishing well certified financial planner Hans Schild today show is retiree income tax specifically now and 2022. So consummately left our heroes seemed aggregate like 20 grand in the standard deduction that we take right off the top.

Yeah. Everything in significant other. Your so security portal large and actively get out of the pack people or the act bracket you get like 28,000 almost 28,000 of standard deduction and this is also made it real being people that are retiree because you keep track of you just put down the number I still can't get that into my right that down the speed I just got to the point right down it on a traumatic birth but never to look at him because the good news no way to get an and then let's go over what a single person as a single person is 12,550 single filing individually for people of any age and then added that is 5+ �1700, or 14 grand standard deduction and again a lot of people are knocking to reach 14 grand and deduction. You know in retirement if they have a you. Jack and then they got some other really, they look pretty well if you don't have a house payment anymore. The other property taxes are not in that level.

This doesn't standard deduction doesn't be.

I am people, but to middle income people even upper middle income people in the lower the system provides a whole deal in his hands than retire the next thing that I put down his Medicare back which is called joke of the mother shows the character, aunt Irma is over there with Uncle Sam collecting attacks on your Medicare and the threshold that are for a married couple hundred $82,000 a year of income and there's a little bit of a complicated form of talk in generalities here. You have a combined taxable income less than hundred $82,000. You don't have to worry about Medicare but if you do not have an income of three or $400,000 year as a couple and you got to get an arm and some people are bumped up there to rock convert deftly committed the big get bumped up over this threshold because there voluntarily. Think back now IRA or a money doing a conversion be tax-free. Later, though this is a consideration, then the people of well-to-do working in retirement. This is a big deal out for a single person.

The arm of the above night about couple things that I think are fascinating about oneness, it's alleged thing I like Manistee.

If you go over that hundred 92,000. It is like Wham you get hit with a whole whopper.

But if you're if you're that hundred and 80. Nothing I and and so it is from a standpoint of some planning done like wow, if I am doing a Roth conversion. Whatever, I know exactly where that ledges and state stay away from it because of Mike but you say and and so unlike no other tax rates and whatever that led to takes into the Irma thing and I find that fascinating that that's their but the other thing that you know I find a lot of retirees.

I talked to really have no understanding at all that they're paying some part of their Medicare. Medicare part B there's there's fees involved in that that they have no idea what you write and I rented it and read the letter that are taken so we can appeal or REGIONAL PLAN AROUND IT. PLANNING LONGER. SOMETIMES PEOPLE ARE EARLY IN OUR AND IS COMING TO THE RIGHT OR RETIREMENT INDUCED CONTACT THING AND TAKE ON SIGNIFICANT IRMA FOR A YEAR OR TWO OR THREE SO THAT WE CAN PLAN TO BE IN THE 70 AND NOT BANNER AN UPDATE ABOUT THE THERE'S A AN ELEMENT OF A CURRENT PAIN NOW WAIT AND LIGHTER.

SO IN OUR PLANT SO I REMEMBER MY SAN FRAN 1200 DAYS AS A CAR MECHANIC AND YOU CAN PAY ME NOW OR YOU CAN PAY ME LATER. THAT'S THE DEALER THERE'S A LOT THAT WE ARE GOOD PEOPLE AND PAYING MORE TAXES THAN THEY WOULD LIKE. I GAVE YOU TO LOWER MY PLAN OVER 2030 YEAR SO RIGHT DENT WILL GO THAT WELL IS SHORT, BUT IF I DID ON THE VIDEO THAT SINGLE PERSON THE TOP OF THE 22% TAX RATE IS 89,000 KNOWN ABOUT IT OTHER ME MAJOR LAST DOLLARS AND 22% FEDERAL AND IF YOU GO A DOLLAR OVER THAT.

THEN ALL THOSE DOLLARS. BEYOND THAT OF .4% AND FOR MARRIED PEOPLE AT THE HUNDRED 78,150 AND SO WISE THAT BROUGHT CORRECTLY WAVING AT ROTH IRA CONVERSION OF THE NUMBERS WE PLAN RIGHT UP AND SO ON THAT FEDERALLY THAT IT THAT SOMETIMES WE HAVE PEOPLE THAT GO EVEN MUCH HIGHER IN TERMS OF THE CONVERSION FROM A RAW BECAUSE THEY'RE WILLING TO PAY THE 24% FEDERAL AND THERE REALLY AND THAT CREATE OUR OWN. BOTH SECURITY AND CONTACT OVER JUST TO DO THAT FOR A FEW YEARS IN THE MORGANVILLE LOCAL ROCKDALE THAT WE CAN LATER TAKE OUT ASHBURY AND THEN BRING THE WAY� I LIKE THE 0% SO THAT I HAVE A VIDEO GO TO THE TALK ABOUT THE INCOME TAX BRACKET WHICH ARE IN THE AMOUNT OF THE PERCENTAGES ARE PRETTY LOW COMPARED TO HISTORY AND STATE INCOME TAX.

SO I GO BACK TO THE STATE GET THERE. THERE'S EIGHT THEY THAT HAVE NO STATE INCOME TAX, LANSDOWNE, FLORIDA, NEVADA, SOUTH DAKOTA THAT WASHINGTON AND WHILE SO THEY IV STATING THAT ALL AND YOU HAVE PEOPLE WHO MOVED TO THE STATE IN RETIREMENT PAY.

TAKE ADVANTAGE OF THE TAX RATE STATING THAT THE LOWLY NORTH DAKOTA .9% OF THE STATES THAT HAVE IT IN CALIFORNIA IN THE HIGHEST BRACKET OF 13.3% IS SOMETHING TO DO WITH A LOT OF HELP, BUT THE COOL THING YOU POINT OUT WAS THAT CALIFORNIA HAS NO INCOME TAX.

AFTER 65 I ON YOUR ON YOUR SO SCARED ON YOUR RIGHT RIGHT BUT WE HAVE A LOT OF PEOPLE IN LIKE THAT THAT ARE DOING ROCK BEAVER SETTING UP THE PURITY AND THEN THEY HAVE A VERY COMING FROM TAX-FREE SOURCE AND SO THEY CAN JUST AVOID BOTH OF THE FACT THAT RETIREMENT GOING ON HOW MUCH MONEY THEY HAVE BEEN THERE.

THERE IS A LOT AWAY SHELTERED THINGS, AND FRANKLY, WHEN YOU GO OUT TO LAS VEGAS WITH MY GOAT MEETING.

THERE'S A LOT CALIFORNIA BROKE OUT THE GIFT OF MIND A LITTLE STATING THAT THEY SPEND HALF THE YEAR IN THE AIR JUST UNDER HALF THE YEAR ELKHORN THINGS LIKE THAT WITH FLORIDA IN OUR AREA THAT THEY ONLY HAVE A MIZZEN FLOOR THAT WILL OVER SIX MONTHS SO THEY DON'T PAY ANY SALES REALLY MEAN I DIDN'T EXPECT IT TO BE. BUT IN OUR PLANNING IS WE WORK TO UNDERSTAND ALL OF THE FAMILY DOWN PEOPLE THAT ARE COMING IN RETIREMENT PLANNING, FINANCIAL PLANNING, TAX PLANNING, AND WE LISTEN TO WHAT THEY WANT AND LISTEN TO WHAT'S IMPORTANT AND HOW MUCH MONEY THEY NEED TO LIVE ON BIGGER OUTWEIGH THE PLAN ALL THE SO THAT THEY REDUCE THE TAX BILL OVER THEIR OLDER COURSE DOESN'T SOUND LIKE ALL THAT MUCH TO SINK YOUR TEETH INTO.

BUT AS YOU BEGIN TO UNDERSTAND HOW IT IS ALMOST AS FUN TO ME NOW AT THIS POINT IN TIME HANS TO SEE IDEAS IN ORDER TO MAXIMIZE THE TAX-FREE INCOME FROM MY INNER FOR MY ESTATE. IN OTHER WORDS, MY KIDS RIGHT IT IS, AS I DO THOSE ROTH CONVERSION. SO, FREE TIME ON THE OTHER SIDE OF THE EQUATION. THE NEAT NEAT NEAT THING IS RIGHT THAT THERE THAT IN MY ESTATE IF I'M DOING MY PLANNING RIGHT THAT THE AMERICAN ALEVE MONEY THAT IS ABSOLUTELY TAX-FREE TO AND OF THE NEXT GENERATION THAT IS GOOD AND REALLY NEED THE MONEY RIGHT YOU KNOW WE GOT LONG-TERM CARE WOULD BETTER TAX SMART TO PLAN, MAKE AND COMPACTOR. LATER IN YOUR LIFE, LOWER THAN SPECIFICALLY CARE WOULD BE BUYING IT WITH AFTER-TAX MONEY OR MONEY DON'T PAY TAXES ON PROTECTING THE ESTATE AND ENERGY. DON'T USE LONG-TERM CARE THAT COMES HERE THAT SO TAXES AND TAX STRATEGIES ARE BURIED IN EVERYTHING WE DO IS ABSOLUTELY WONDERFUL AS USUAL WE RUN OUT OF TIME BEFORE HE RAN US THAT'S GOOD THAT MEANS I DID. THE BAR SHOWS OUT YET SO WELL. WE WANT TO REMIND YOU THAT TODAY SHOW IS ALWAYS BROUGHT YOU BY CARDINAL GUY.COM CARDINAL DIET IS FOR YOU TO FIND CARDINAL ADVISORS, WHICH IS WHAT IS YOUTUBE CHANNEL IS BUT A CARDINAL. YOU CAN GET HANS'S EMAIL ADDRESS HIS BOOK THE COMPLETE CARGO GUIDE TO PLANNING FOR RETIREMENT AS WELL AS THE PHONE NUMBER TO CONTACT HIM TO HELP YOU ME KNOW WHAT IT WHAT A JOY IT IS REALLY TO WORK WITH SOMEBODY THAT THAT REALLY IS HAVING FUN DOING THIS FROM MY STANDPOINT AND AND BEING GOOD STEWARDS OF IT SO THAT WE REALLY CAN FINISH WELL.

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