What happens to your taxes when you retire
Your taxes might go down when you stop earning a paycheck, but that doesn’t mean you won’t pay income taxes in retirement. If you’ve been saving for retirement with a tax-deferred retirement account like a traditional IRA or 401k, distributions from those accounts count as taxable income. Plus, if you have enough income from outside sources such as interest or dividends, some of your Social Security benefits will be taxable, too.
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2 thoughts on “9 Events When Your Taxes Drastically Change”
Just a quick question if a person has not worked for a year and she has no medical insurance does she have to pay the fee at tax time because she does not have a job
It depends on your household income and the plan year. For 2018 plans and earlier, if insurance is unaffordable to you based on your income, you may qualify for an exemption from the fee. Other exemptions are based on low income too.