Will Your Taxes on Social Security Income Spike When You Get Your Next COLA Increase?

At first thought, I was pretty happy about the idea of getting the largest Social Security COLA (cost of living adjustment) increase in decades, whether it is 6.0%, 6.1%, or 6.2%! It seems no matter what that final number is going to be, it will be a big increase. Let’s face it: even with all of the financial pressures and problems we have been dealing with for the past year and a half, the cost of living for Social Security recipients is always a topic of drama and concern. If you aren’t one of “us” now, you will be one day and then you will be much more sensitive to it, I assure you.

Elderly woman’s hands clasping her cane as she considers whether she will have to pay taxes on Social Security income

But what about your income taxes on Social Security income? If you receive Social Security, will your taxes spike because you just got a big COLA increase in 2022?

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Missing Your Money Due to a Tax Refund Delay? You’re Not Alone

It’s all over the news every day. May 17th was Tax Day this year and unless you filed for an extension, you had to settle up with Uncle Sam or face interest and penalties on your tax bill if you didn’t. That’s bad news for millions and there’s just no way to avoid it if you failed to file on time.

But what about the situation in reverse?

If the tax refund delay is causing you financial problems, here's how to deal with it and to make sure it doesn't happen again.

The IRS is behind on processing tax returns due to staff shortages and other complications. This tax refund delay could be holding up the money you were counting on to cover your bills.

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Cheating on Your Taxes: Why It’s a Bad Idea

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It’s income tax season and I don’t have to remind most of you that it is. But for some of you, it may never actually be “tax season” because you’re cheating on your taxes. If that sounds weird to you, take a minute to think about it.

Cheating on your taxes may be tempting, but it's a bad idea. If you're self-employed, it's easier to do, but you're also more likely to get caught.

Paying taxes are one of our least favorite things to do and our usual goal is to minimize and even avoid paying them in every possible way we can. In fact, I’m going to say this right now, if you thought you could get away with it, you’d probably not pay a penny in income taxes at all! But if that even crosses your mind for a second, let me give you some sage advice: Don’t ever cheat on your income taxes!

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More of What You Need to Know About Your 2020 Taxes

I like to think that I am really good at doing my own taxes every year. I have had a few decades to perfect my skills, so I’d say I am pretty experienced at doing it and I actually look forward to it, believe it or not. But this year for our 2020 taxes, it may be a bit more of a challenge for me and for you.

Your 2020 taxes may look a bit different thanks to these changes, mostly as a result of the pandemic. Be prepared!

A few weeks ago I wrote about some of the tax changes for 2020. But there’s more you need to know about the changes that have been made. Why? It’s mainly because of the pandemic and how that has affected everything and that includes your tax picture.

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Will You Need to Pay Any Taxes in Retirement?

When you think about your retirement, what usually comes into your brain are all the times when you will sleep late, dress comfortably, and spend most of your time doing just about anything you want to do. The everyday grind of fighting traffic and the routine at work—and even worse the pressures of it—will be far behind you when you retire and you cannot help but think about the good things that retirement will bring. But is that all a reality?

It's important to plan ahead to minimize your taxes in retirement. Here is a list of income that is taxed as well as breaks you can use.

When you’re younger, you may spend some of your time trying to avoid paying taxes and stay up on all of the tax law changes to do it. Here are some of the ones everyone under 50 should know right now.

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Are You Missing Your 2020 Stimulus Check?

Now that we are into the year 2021, we have a new clean slate and that means we can start our financial recovery right now. So if you are entitled to government help via a stimulus check, then make sure you get every cent of it! If you haven’t as of yet, there is a remedy.

Are you missing your 2020 stimulus check? Here's why you might have missed it, and how to get it now with your 2020 tax return!
iStock.com / cabania

To help fight the economic losses from the coronavirus impact, the Internal Revenue Service (IRS) issued about 160 million stimulus checks (many of them $1,200 checks) for eligible Americans in the first round of economic impact payments (EIP) that began in April of 2020. Millions more payments, dubbed EIP 2 ($600 checks), started going out last December as a second round of stimulus.

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You Will Pay These 6 Types of Taxes Forever

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It’s a new year and with that comes the hope that everything is just plain going to get better. We all hope that. That means everything including your finances, especially after what will go down as a disastrous 2020 and so many who have suffered economically. But with a new year also comes the reality that “tax season” is now upon us. April’s due date is just a few months away and January is the start of your prep time for that event. But while your income tax returns get all the fanfare, there are different types of taxes we are subject to.

There are different types of taxes that you will need to pay. Understanding the different types helps you to plan and minimize your burden.

Taxes affect just about every facet of your life, even if you don’t realize it. Learning the different types of taxes you pay can help you understand the true cost of your financial fortunes. Here’s what may be a shocker to you. Income tax isn’t the only tax that you will be paying this year. In fact, you will be paying taxes every year…wait for it…forever!

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How Will Your 2020 Income Taxes Be Different?

Like everything else in 2020, your 2020 income taxes will be like doing taxes in no other year. It’s now the time of year to start thinking about taxes, but so far not a lot of real info is out there for you to prepare. But one thing is for sure, the upcoming filing season is going to be a bit trickier for many Americans due to the rampant unemployment, working from home, and general upheaval due to the COVID-19 virus.

Filing your income taxes for 2020 will likely be different than previous years. Check out these differences and be prepared.

So strap yourself in and get ready. Here are just a few of the pandemic-specific conditions, good and bad, to be aware of as you get ready for 2020 income taxes.

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