As the average worker approaches retirement, priorities begin to shift. An often overlooked but important aspect of any retirement preparation is how your limited income will be taxed by your state of residency. According to a study, taxpayers can save an average of $1,977 a year by moving into a state with no state income tax, based on an average tax rate of 4.05 percent.
Social Security is an extremely helpful financial benefit for millions of Americans. However, it is often misunderstood. Some people miss out on valuable benefits and opportunities simply because they do not understand how the program works, or they do not know what they should be doing to take full advantage of this resource.
In December 2017, the U.S. government passed a new tax law that would impact the majority of American taxpayers. Dubbed the Tax Cuts and Jobs Act of 2017 (TCJA), the overall tax rate was designed to lower tax liability.