Retirement Income Tax Preparation,
Without the Stress
Retirement changes how your income is taxed as much as it changes where the income comes from. Instead of one paycheck, you may draw from Social Security, a pension, an annuity, and one or more retirement accounts, and each of those is taxed on its own rules. Social Security is only partly taxable, and how much depends on your other income, so two retirees with similar totals can owe very different amounts. Nebraska treats these streams unevenly, exempting some entirely while taxing others at ordinary rates. And because no employer is withholding for you anymore, staying ahead of what you owe is now your responsibility. Drawn in a coordinated way, retirement income can be remarkably tax-efficient. Left unmanaged, it tends to surprise people.
Our office is at 12305 Gold Street in West Omaha. Some clients with retirement income choose us because they know the price before we begin and deal directly with one credentialed professional throughout the process, not a seasonal tax preparer. Your return is prepared by a CFP® professional, CFA® charterholder, and Enrolled Agent. We respond promptly, even during tax season. Once your return is complete, you receive a recorded video that walks you through every number and what it means, so you understand what is being filed and why, and you are not required to pay until your return is ready to be filed.
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Some Situations That Might Apply to You If You're Retired or Nearing Retirement
You started collecting Social Security
Social Security comes as a surprise to many new retirees in one specific way: part of it is usually taxable on your federal return. How much, anywhere from none of it to most of it, depends on your other income for the year, so a larger IRA withdrawal or a capital gain can pull more of your benefit into tax. Nebraska has moved to exempt Social Security from state tax, which helps, but the federal side still turns on the rest of your return. Knowing where your income sits relative to those thresholds, before you take a large withdrawal, can keep you from taxing more of your benefit than you needed to.
You are drawing from several sources at once
Most retirees do not live on a single income stream, and the interaction between them is where the planning lives. A withdrawal from a traditional account can raise how much of your Social Security is taxed, push you into a higher bracket, and even lift your Medicare premiums two years down the line, all at once. Coordinating which account you draw from, and when, can lower the total tax across all of your income rather than optimizing any one piece. This is exactly the kind of question that benefits from a preparer who also understands the investment side, which is the combination we bring.
No one is withholding your taxes anymore
For decades an employer handled withholding, and in retirement that responsibility becomes yours. Taxes can still be withheld, from Social Security, from a pension, or from an IRA distribution, but the elections are yours to set, and getting them wrong is common. Too little withheld across the year can bring an underpayment penalty even when you pay the balance in April. We help you set withholding or quarterly estimates so your income streams cover what you owe, and a fixed-income year does not come with a spring surprise.
We also help with related situations, including retirement accounts, brokerage accounts, and quarterly estimated taxes. Or browse every income tax situation we help with.
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