Retiree Tax Heavens (and Hells)
Click through our photo gallery and see which cities are the most tax-friendly & unfriendly for retirees.
Not everyone is required to file an income tax return each year. Generally, if your total income for the year doesn't exceed the standard deduction plus one exemption and you aren't a dependent to another taxpayer, then you don't need to file a federal tax return. The amount of income that you can earn before you are required to file a tax return also depends on the type of income, your age and your filing status.
The Internal Revenue Service (IRS) permits you to write off either your state and local income tax or sales taxes when itemizing your deductions. People who live in a state that does not impose income taxes often benefit most from this deduction. However, you might also be better off deducting sales taxes instead of income taxes if you make large purchases during the year and your total sales tax payments exceed those for state income tax. You can use either the actual sales taxes you paid or the IRS optional sales tax tables.
A flat tax requires you to pay a fixed percentage of your income, no matter what that income actually is.
Giving is truly better than receiving, especially when your generosity can provide income tax benefits.
Deducting business expenses isn't just for the self-employed. Taxpayers classified as employees can also deduct some of their unreimbursed business expenses.