5. Your property tax will likely increase
It comes as no surprise that retired people live on a budget. Even though inflation affects living costs tremendously, there are ways to diminish expenses. Not purchasing expensive items could be one of them. However, retirees can’t avoid an increase in property taxes given the surging housing market. This is an expense that can put a strain on retirement funds.
6. You might face estate taxes
If your estate is quite valuable when you pass away, the taxes your heirs might face can be quite sizeable. For the 2022 tax year, if the estate is valued over $12.06 million (or double that for couples, $24.12 million), you will have to file tax return and everything over the minimum amount we mentioned can end up being taxed.
You have to keep in mind that if your property’s value is less than $11 million, all your inheritors are free from filing an estate tax return. The inheritance tax is perhaps one of the most disliked ones. Most Americans consider this type of tax inappropriate, while some think that facing it may lead to their financial disaster.
Takeaway:
All Americans know that there are two things you can’t escape: death and taxes (the latter probably being scarier than the first). So, if you can’t escape them, at least you should at least get familiar with your “opponents.” In the end the goal is to decrease the income that gets taxed in any way possible.
It is always better to be safe than sorry!
If you want to find out more about this subject, we recommend you also read News: 6 States That Will Tax Your Social Security Benefits!
