The fact that you can do a 20 minute video and barely cover the type of taxes (and not even all of those) is ample illustration of the ridiculous complexity of our tax system.

@wmp3346

3 ай бұрын

Educate yourself and quit whining

@ericolens3

Ай бұрын

another CPA covered it in a different way. "the 3 buckets" pre tax tax deffered and Post tax

My wife & I are 77 & both retired from jobs with modest pensions! However, since getting Soc. Security, plus having to take RMD's from our 401k & 403b's at age 70 1/2, we are now in as high a tax bracket as we were, while working! The problem: (1) Soc. Security is taxed up to 85% (2) RMD's are taxed on (TOP) of total income, instead of being taxed at a fixed percentage, as dividends are currently done! Retirees shouldn't have to pay more in old age!

@Dare2Soar1

3 ай бұрын

That sucks! I’m so sorry for you. Our seniors deserve a break from taxes. 😢

@weliveinsf

Ай бұрын

…and don’t forget IRMAA, the Medicare trap😢

@bigtoeknee11

Ай бұрын

Some of those taxes as well as IRMAA may have been avoided with Roth Conversions prior to taking SS also QCD may be of help now, please look into it.

@mofreeman223

26 күн бұрын

This is why I selected roth. I didn't want to have to take rmds.

@wharrison7131

5 күн бұрын

If you have to worry about about taxes in retirement, consider yourself lucky.

Thank you James! My first year of dealing with all this after retirement. I have a tax professional I trust but it is important for me to have a basic understanding. You do a wonderful job of supporting your clients

You got my attention! Thanks for explaining the various tax implications. I look forward to your next session!

Thanks James for another great, informative video! I came across your channel and subscribed about 6 months ago while I was researching my early retiremnt and determining my plan. Of course I watched a lot of channels but really liked the way you don't do "cookie cutter" plans. After listening to a few of your video's I realized how much more planning I needed to do. Now after listening to your channel about 6 months, I feel a much more comfortable with how my plan is coming along. Recently, I found Ari's channel and find his information very valuable too. So I want to thank you and Ari for all the knowledge you have given to me about retirement planning.

Another GREAT video! Very comprehensive. Thanks James!

James - Clear, concise information. Just subscribed, keep up the great work, please!

To simplify - if you saved money and were responsible, you will pay a lot more than those who didn't save a penny. You mentioned IRMAA but don't forget that ACA is a large "tax" based on your income.

Another great video! Thank you!

Thank you so much for the pdf. Very helpful!

Hey James thank you so much for the video. This helps explain the details in addition with cheatsheet.

Thanks for explaining all the taxable and non-taxable sources James, great job as usual! The only source I was unsure about was why certain Dividends are also classified as Ordinary Dividends even though I held my funds for many years. Your explanation has cleared it up for me, thanks again!

Thank-you James, for the 2024 Important Numbers chart. So much more organized than the scribbles in my notebook!😊

Thanks James. Great overview on tax rates/types and potential impacts to investment portfolio.

Thanks a lot , James.

Great information in this video.

Thank you James for valuable information. As always I really like your channel. Thank you.

Very good very knowledgeable.thanks

Thank you James for the great summary! Similar to IRMAA, other taxes not normally seen as taxes, are loss or repayment of ACA subsidies, as well as the phase out of credits based on reportable income thresholds. Also worth mentioning that the 20% rate on LTCGs does not really exist, as it always comes with the additional 3.8% of NIIT, so it’s really already 23.8% after your income reaches the threshold for the 20% LTCG bracket.

This guy is so good. I understood more in 20m than 20y of working

@Dare2Soar1

3 ай бұрын

Yes! Same here and I have short attention span. 😅

@vjohnso2004

2 ай бұрын

I agree 100%

Hi James, I just found you. I am retiring in 2 months and I am a nervous wreck when it comes to taxes! Thank you for the free download!

Excellent

Thanks James

Thank you for all the great information. Please could you make a video about how to pay taxes on sale of a rental property? Thank you 🙏

ft comment= HI, really the stats I have been looking for, like forever. Thanks!

James- can you please do a deep dive on the “Rule of 55”? Don’t think many folks are aware of this option. Thank you!

Your videos are very valuable thank you for your information. Be careful with long term and qualified dividends. The tax rate depends on IRS ordering rules which will compress this income tax bracket because it is calculated or added on top of ordinary income.

One of the things I’m glad you said that I didn’t understand. I thought all states the tax income as far as her time. It’s a concern included Social Security now I realize that a lot of states that I like that if I wanted to move to them, they don’t tax my Social Security that’s a help right there but then I do have a pension they would tax that so they’re drawbacks but it’s nice to know that there are some states that don’t try to take what little you get out of Social Security, because so many people make so little on Social Security, including me that’s why I keep working

James, thank you for your informative videos.I appreciate your clear and concise delivery. Question, in the calculator link you provided, is the calculator lifetime access when signing up for your learning academy?

Thank u

This is very clearly and concisely presented. I had forgotten that the government took out 7% or so out of your work pay to pay for ss and medicare.

4:53 It's probably worth illustrating that the standard deduction may further effectively reduce your effective tax rate.... In this admittedly simplistic example of only 10,000 in social security income, the entirety of your $8500 taxable income would be covered by the standard deduction and you'd end up owing no federal income tax on it. I only nitpick here because some people undoubtedly forget that when they hear they're in a 10%, 22%, or whatever tax bracket and think they're paying that % in taxes when in reality their effective tax rate is lower - and for people at or below median incomes, often much lower since the standard deduction covers a greater portion of their income.... and even for those who make a fair amount more, the rest is still taxes progressively. I know that's hard to illustrate but when people skip over it when explaining tax rates, it contributes to people thinking they're being taxed more than they really are.

@July.4.1776

3 ай бұрын

@think_ffs3934 Great points. 👍

@jeangreen432

Ай бұрын

I agree, I'm glad you mentioned this as there's more that he didn't explain than just that. I hope people aren't trying to get their tax info from youtubers.

I think you touched on this briefly in one of your videos, but what would be very helpful would be how to determine, when withdrawing from taxable nonretirement accounts, how much of the withdrawal would be reported income (would show up on your federal tax return). In other words, how to determine the gains, as only the gains would be taxable and therefore would be reported income. This is not so much for determining income tax on the gains but rather for health insurance purposes. This can get very complicated, so I think you could probably make a whole video about it. FYI, the two brokerages I use wouldn't help with this and referred me to a CPA, however, the CPA I talked to (just one so far) didn't seem to have the knowledge to be able to help with this either.

Like your program on how much taxes you pay on Social Security and retirement plans altogether well done sir well done I’m not 1,000,003 in there, so yeah millionaire programs I don’t watch them because it’s of no interest to me. Yeah I will never have $1 million in my wallet but right like your program for this one this is really well done. Thank you keep up the good work God bless and protect long live the republic.

Incredibly high yield video. Thank you for this and the spreadsheet!

@RootFP

4 ай бұрын

Thanks for watching!

🎯 Key Takeaways for quick navigation: 00:00 💼 * Overview of retirement taxes* - Introduction of retirement taxes and how it's different from when you're working. - Explanation of payroll or FICA taxes that cease once you retire. - Outlook on federal and state taxes that apply during retirement. 02:06 📉 * Differentiating between ordinary income tax rates and long-term capital gain tax rates* - Emphasis on the importance of understanding the difference between the two tax rates. - Explanation of ordinary income tax rates and long-term capital gain tax rates. - Introduction of the concept of marginal tax brackets based on different income levels. 03:28 🧾 * Impact of Social Security income on retirement taxes* - Discussion of how Social Security income factors into federal tax calculations. - Explanation of how up to 85% of Social Security benefits is included in taxable income. - Examination of how Social Security is taxed at a federal level and how it varies from state to state. 06:12 💵 * Tax implications of pensions in retirement* - Description of how pensions, like salaries, are typically taxed at federal level. - Mention of various state taxes and their potential impact on pensions. - Indication of strategies to minimize taxes on Social Security and pensions. 07:24 🏦 * Taxes on various forms of interest during retirement* - Explanation of how tax calculations depend on the type of interest being earned. - Breakdown of how bank savings, corporate bonds, treasury bills and municipal bonds are taxed. - Suggestion to calculate the after-tax yield of bonds and the importance of where bonds are held for tax purposes. 11:08 💰 * Taxation of dividends during retirement* - Explanation of how taxation of dividends depends on whether it's qualified or non-qualified. - Comparison of long-term capital gain tax rates versus ordinary income tax rates. - Highlight of the need to hold stocks for a certain period for dividends to qualify for long-term capital gain taxes. 12:27 📈 * Considerations on capital gains in retirement* - Description of how holding periods impacts the capital gains tax rates. - Explanation of the implications of mutual fund turnover. - Importance of considering after-tax gains when selecting investments. 14:05 💸 * Tax benefits of Roth IRAs and traditional IRA distributions* - Indication of tax-free distributions from Roth IRAs. - Treatment of traditional IRA/401K distributions and the impact of the withdrawal amount on taxes. - Suggestion to implement a Roth conversion strategy or qualified charitable distributions to decrease taxes on IRA distributions. 16:22 🏠 * Taxes on rental income in retirement* - Discussion of how net rental income is taxed at the federal level. - Examination of the deductions available for a rental property including mortgage interest, property taxes, and depreciation. 17:04 🏬 *Taxation of rental income in retirement* - Explanation of the 'net income' concept in rental income taxation and the tax deductions that can be claimed. - Description of the process of depreciation and its impact on taxation. - Mention of the concept of 'depreciation recapture' when a property is sold. 17:45 💰 *Additional taxable incomes in retirement* - Introduction of non-standard taxes that retirees might need to be aware of, like the Net Investment Income Tax. - Clarification on who is subjected to the Net Investment Income Tax, based on income and filing status. - Brief introduction of Medicare's Irma Surcharge, an additional levy for retirees with incomes that exceed certain thresholds. 19:10 🕹️ *Strategy for retirement income * - Introduction to the importance of strategic thinking for retirement income, given different tax rates. - Suggestion to watch another informational video on how to decide from where to pull retirement income. - Emphasis on the role of financial advisors in helping retirees maximize their income. Made with HARPA AI

@Dare2Soar1

3 ай бұрын

Wow! Thank you!

@heidikamrath1951

2 ай бұрын

Thank you!

Estimating taxes is what may be the final factor in determining whether I retire at 63 or 65. I have a good handle on all the other numbers.

Actually, at 1:20, if you are earning more than $200K (single or $250K married filing jointly) it's no longer 1.45%, it goes up to 2.35% for income over those thresholds. This was added in 2013 as part of ObamaCare.

Because localities continually raise property taxes, you'll never know. Taxes are one of the many reasons I'm retiring overseas.

Great information. Taxes can be more complicated in retirement depending on sources of income and earnings. I have been subject to quarterly tax payments based on prior year which has been a pain. I heard that if you pay your estimated taxes from an IRA, you can avoid quarterly taxes until the end of the year and just pay once directly from IRA but that your estimated payment needs to be equal or more than the amount owed. Any thoughts on this approach?

In our state any thing that is 1099-R is also exempt from state income tax..

Rental property income is amazing!!!

@shawnbrennan7526

5 ай бұрын

Until you sell and have to pay taxes on the capital gains and depreciation recapture. Painful.

James Conole, you are climbing the KZread algorithm ladder with your outstanding content and prodigious content creation; thanks very much! In five years, you have my permission to consider making a leaving KZread video, but never before then.😀

Are monthly condo dues eligible for deduction of rental property income (as an expense)? Thank you....I so appreciate all of your educational videos.

James, Is money received from owner financed sale of a business considered earned income or passive income?

Hi James I've enjoyed your videos. Your bits on sequence risk & tax planning particularly. I thought I might have an interesting topic you might explore. Scenario: A younger couple collecting 70,000/yr in retirement, still 5 years from collecting social security, 1.5 Million dollar portfolio + 600k Home Equity, 100% S&P 500. Can this couples portfolio survive sequence risk in a hypothetical 1-2 year bear market, on their very first year retired, by selling the home and putting the proceeds into Stocks. IE: Can a Home be used to reduce sequence risk? Does this allow a higher risk, higher return investment portfolio, Should a home be used this way? I have considered such a potential move in my own planning, I would be curious to have your thoughts on it, & I thought it would be an interesting topic.

14:20 missing “PodCast here” link

If you file your taxes using an income tax software package, you can run the following tax returns: Working, Retired MFJ, and Retired Single (i.e., Widow). This helps with planning including staying in the desired tax bracket and avoiding IRMAA charges to Medicare.

@dewikle2

4 ай бұрын

Which software packages do you like? And do they allow you to run your analysis strictly on your PC or do they upload that data to other parties?

You didn’t mention non deductible ira withdrawal where you would have a cost basis. Other than that excellent

Great video. Notice all the times you say I made a video here and pointing at the screen. Yes there is nothing there 😊 at least not on my tv.

@rick_vv7754

5 ай бұрын

They are there. You have to click on "more" to see it.

@itsmet559

5 ай бұрын

It pops up when you watch on your phone.

What about NYS as far as a pension goes. Do they tax a pension?

I have health insurance from my husband ( retired govt), a 1200 month pension( I’m a teacher), and 420k in portfolio ( taxable, pre tax, and tax free). House not paid for ( owe 150k), husband has 53k a year govt pension , no debt. Husband has 730k in portfolio too. I am 59, I am retiring in June. I will substitute teach some. How am I doing? Thanks - I like your channel

All excellent info but there are 3 places in the video that you said you’re including a link to another video and there was no link pop up

@itsmet559

5 ай бұрын

I'm watching on my phone and the links pop up.

😊 lookin good😊

wow..it kinda blows that if you are financially responsible and hold a mutual fund for over the year threshold but the moves the fund manager makes for that fund to perform at peak generates a STCG tax that is rolled over to you as the fund holder...doesnt seem fair.

I’ve turned over my nest-egg to an investment firm. I am pleased with the over all performance. However now most of taxable comes from capital gains.

@shawnbrennan7526

5 ай бұрын

Better LTCGs than Dividends.

@ASouthernBoyCanSurvive

2 ай бұрын

He didnt say LT C gains​@shawnbrennan7526

I don’t see the sheet

It's not really correct that Medicare taxes go away when you retire. Investment income over $200K for an individual, and over $250K for a couple, get a 3.8% NII tax, which is used to fund Medicare. Moreover, retirees will also be paying IRMAA, which in essence is a Medicare tax. Treasury bonds being tax-free at the state level may have some interesting side effects. If you can lower you state AGI enough, you may become eligible for other benefits, such as an exemption of your SS income from state taxation. You should have mentioned that REITs, MLPs, and BDCs look like stocks and pay a 'dividend', but it's not considered a qualified dividend because of the structure of the entity. You might also have mentioned the special treatment of capital gains on company stock held in a 401K.

Consult your tax CPA to discuss your particulars about taxes you'll pay or not pay.

James, it is not clear how to download your “extras”, like the chart of 2024 important numbers. Do I need to subscribe to a pay service to gain access to them?

@MichaelDieterle

5 ай бұрын

Click on more… under the description section is the link to the PDF. All they ask for is signing up for their email newsletter.

@itsmet559

5 ай бұрын

There's a link in the description box.

I believe retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs...to pay taxes

So basically, when you retire, its BOHICA.

@eddieloujones2673

Ай бұрын

Yep 👍

"Only the little people pay taxes." ---Leona Helmsley

@Dare2Soar1

3 ай бұрын

So what the little people do

🤘

Can you contribute to a ROTH IRA if you are not working?

@heidikamrath1951

2 ай бұрын

As a single person, NO. You must have earned income. Married couple situation is different. A spousal IRA allows a non-working spouse to set up his or her own Roth IRA as long as one person in the couple brings home a paycheck and they file taxes jointly.

IRMAA GERD taxes!!

Super sharp with your explanations here. I have many years before I retire but understanding how it will work in the future, will better set me up for investment strategies today.

Can u open a roth ira if you are not working?

@timma8510

4 ай бұрын

You can open a Roth IRA account but you cannot directly contribute to it unless you have earned income. So why would you open one? Well, it would allow you to do pre-tax 401k/IRA conversions to a Roth if you have money in those accounts. But you have to have money to pay taxes on the conversion.

@lindawilliamson1661

2 ай бұрын

You could also open and fund a Roth IRA account if your spouse has sufficient income from employment.

Employees pay 12.4% SS taxes… employers don’t pay…

@lindawilliamson1661

2 ай бұрын

No, that's not correct. Employers pay half and employees pay half. If you are self-employed, then you are both the employer and the employee, so you pay both halves (minus a small discount for self-employment).

@rumbrell54

27 күн бұрын

@@lindawilliamson1661 you don’t think employers make up what they pay by lowering the actual wage they pay the employee? You are naive…

@rumbrell54

26 күн бұрын

@@lindawilliamson1661 you probably also believe that employers pay for health insurance...

Not a bad video, but by trying to be complete you end up putting too much info into one video. And I hate tax summary sheets that show the tax brackets before showing the standard deductions: those are brackets and rates for TAXABLE INCOME, not INCOME.

You don't have to pay ANYTHING in taxes because TAXABLE YEARS ENDED AUGUST 16 1954 passed into LAW as the IRC of 1954 by the 83rd Congress AS LAW and published AS Volume 68A in the United States Statutes at Large.....as LAW. Any Subtitle F compliant enforcement provisions took effect on the day AFTER the date of ENACTMENT which was August 17 1954 but on that day there was NO TAX TO ENFORCE because the tax died/expired the day before which was August 16 1954. Look at the law at 26 CFR 1.0-1 paragraph (d) clearly says TAXABLE YEARS began December 31 1954 and ended August 16 1954. There has NOT BEEN AN ENFORCEABLE LEGAL INCOME TAX in this country for 70 YEARS!!!!!

@heidikamrath1951

2 ай бұрын

How has not paying taxes been going for you?

Don't give this guy your email address there's no need for him to require an email address you can just get pdf link. It's just a sales pitch. Just watch the video and do a screenshot when you see the info you need

@Dare2Soar1

3 ай бұрын

I don’t think he cares about sales from you. He’s turned down many people who wanted his service. He only takes people who have high assets.

Pa does not tax pensions, age does not matter