Retirement Income Tax Preparation,
Without the Stress
Retirement not only changes where your income comes from, but also how that income is taxed. Instead of one paycheck, you may receive Social Security, a pension, an annuity, and distributions from one or more retirement accounts, each with its own tax rules. Social Security may be only partly taxable, and the amount depends on your other income, so two retirees with similar total income can owe very different amounts. Nebraska also treats these income sources differently, exempting some while taxing others at ordinary rates. With no employer handling withholding, staying ahead of your tax bill becomes your responsibility. When retirement income is coordinated carefully, it can be highly tax-efficient. When it is not, the result can be an unexpected bill.
Our office is located at 12305 Gold Street in West Omaha. Clients with retirement income often choose us because the fee is clear before work begins and they work directly with one credentialed professional throughout the process, rather than a seasonal preparer. Your return is prepared by a CFP® professional, CFA® charterholder, and Enrolled Agent. We remain responsive throughout the year, including during tax season. After your return is finished, you receive a recorded video explaining the numbers, how they were calculated, and why they appear on your return. Payment is not required until the return is ready to be filed.
Ready to Get Started
Choose the way that works best for you.
Some Situations That Might Apply to You If You're Retired or Nearing Retirement
You started collecting Social Security
Many new retirees are surprised to learn that part of their Social Security benefits may be taxable on their federal return. The taxable amount can range from none to most of the benefit, depending on your other income for the year. A larger IRA withdrawal or capital gain can cause more of your Social Security to become taxable. Nebraska exempts Social Security from state income tax, but federal taxation still depends on the rest of your return. Understanding where your income falls relative to the federal thresholds before taking a large withdrawal can help you avoid paying tax on more of your benefit than necessary.
You are drawing from several sources at once
Most retirees rely on several income sources, and the way those sources interact creates the planning opportunity. A withdrawal from a traditional retirement account can increase the taxable portion of your Social Security, move you into a higher tax bracket, and even raise your Medicare premiums two years later. Coordinating which accounts you draw from and when can reduce the total tax across your retirement income instead of optimizing each source separately. These decisions benefit from a tax preparer who also understands investments, which is the combination we provide.
No one is withholding your taxes anymore
For decades, an employer may have handled your tax withholding, but in retirement that responsibility becomes yours. Taxes can still be withheld from Social Security, a pension, or an IRA distribution, but you must choose the amounts, and mistakes are common. Withholding too little during the year can lead to an underpayment penalty even if you pay the balance in April. We help you adjust withholding or make quarterly estimated payments so your income covers the tax you owe and retirement does not bring an unexpected bill in the spring.
We also help with related situations, including retirement accounts, brokerage accounts, and quarterly estimated taxes. Or browse every income tax situation we help with.
Prefer to Learn
More First
Take a quick tour of how we work and what makes us different.
Why Choose MTS