Taxes

How to Retire Well in Wisconsin

July 13, 2021 By Lindsey Boycott Leave a Comment

Wisconsin. Home of the Green Bay Packers and good cheese. While most people think of places like Maui for retirement, you might be surprised by Milwaukee’s many charms. Like many states with shorelines along the Great Lakes, it’s beautiful country with bountiful lakes, forests, and farmlands. Here is how you can retire well in Wisconsin:

How Much to Retire in Wisconsin

With more dairy cows than any other state, Wisconsin produces 15 percent of the country’s milk. While it’s not the sexiest statistic, they are creamery crafters and proudly proclaim their title as “America’s Dairyland” on state license plates everywhere.

Moving on from the bovine, let’s talk taxes in the Badger State. Kiplinger ranks Wisconsin as the least tax-friendly state despite an exemption made for social security benefits. Unfortunately, most other kinds of retirement are taxable and range from 3.54 percent to 7.65 percent. Seniors can subtract up to $5000 of their retirement income under certain circumstances.

Wisconsin’s average combined state and local tax rate is 5.46 percent – reportedly the ninth-lowest rate in the country. It’s a silver lining in an otherwise dark levy cloud for seniors looking to find their perfect mid-east landing spot. But the clouds haven’t parted quite yet; the average property tax rate is the eighth highest in the country at 1.68 percent.

Where to Retire in Wisconsin

Here are three cities you might want to look at more closely:

Marinette

This pretty little city offers lakeshore living at an affordable price. It is located on the coast of Green Bay and provides the active senior with a Shangri la of outdoor options. Twenty percent of the 10,500 residents are 65 years and older – making for a rich mix of people to meet and greet.

The per capita income in Marinette was $27,021, and the cost of living was 7.9 percent lower than the national average. If you’re in the market to buy, Zillow reports the average home value is $119,176. The average rent for a 1-bedroom apartment is $729.

Beloit

In the heart of Southern Wisconsin, Beloit is a lively community with an abundance of culture. There is no shortage of things to keep the discerning retiree engaged between the art museums and the natural scenery. There are over 36,000 people in this corner of the world, and 13.6 percent are seniors. Zillow says the average home value is $133,181, while Zumper reports average rent is $705.

The cost of living is 7.1 percent below the national average, while the per capita income comes at $22,375. Its affordability and amenities make this a good bet for the budget-conscious senior with a taste for finer things.

Two Rivers

This lakefront community provides its 11,041 residents with ample opportunities for hiking, skiing, and boating. Located on Lake Michigan, the town’s approximately 2200 seniors get to enjoy four actual seasons and an active lifestyle.

It’s a reasonably priced city with the cost of living 7.1 percent lower than the national average and the typical home valued at $117,507. With all the money a retiree can save on living expenses, there will be plenty do right in your hometown.

Retire with Theses Apps

App	Fees and Minimum	Best for:
Betterment	0.25% per year no account minimum	Saving for retirement
Ellevest	$1-$9 per month no account minimum	Retirement especially for women
Personal Capital	Free	Planning retirement

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Photo by Vladimir Soares on Unsplash

How to Retire Well in Vermont

July 12, 2021 By Lindsey Boycott Leave a Comment

After the Von Trapps fled their Austrian home, the family that inspired The Sound of Music decided to settle and ultimately retire in Stowe, Vermont. While Georg, Maria, and their melodic progeny were fleeing Nazi persecution, most retirees these days arriving in the state under less dramatic circumstances. Here’s how to retire well in Vermont:

How to Retire Well in Vermont

Like any state, retiring in Vermont comes with its joys and pains. The cost of living in Vermont tends to run higher than many other states, with the top ten cities averaging about 20 percent above the national average for life’s basics.

Vermont might not be the place for prosperous golden-agers looking for a land of low tax rates. The Green Mountain state charges between 3.35 percent to 8.75 percent for income tax – especially impactful for those with higher retirement incomes.

Before passing over this major producer of maple syrup, you’ll want to know this state’s tax system is sympathetic to low to middle-income Americans. With a more modest income factored in, Vermont comes in under the national average.

However, most types of retirement income are taxed, which starts adding up when you factor in other kinds of tax. For example, the average combined state and local sales tax is 6.22. While Vermont’s revenue collecting schemes might give you sticker shock, the sales tax does come in below the national average.

Retire Using These Apps

App	Fees and Minimum	Best for:
Betterment	0.25% per year no account minimum	Saving for retirement
Ellevest	$1-$9 per month no account minimum	Retirement especially for women
Personal Capital	Free	Planning retirement

Where to Retire Well in Vermont

Vermont is all about New England charm and rolling, verdant hills. The state attracts hardy souls who enjoy nature-oriented endeavors, small businesses, and scenic, little towns, like these four options:

Brattleboro

It’s a picture-perfect town with an appreciation for the aesthetic. Recognized in John Villani’s famous book The 100 Best Art Towns in America, it’s a popular place for the silver fox set to retire and partake of all the culture this place has to offer. Over 11,000 people call this place home, and the median income is $241,760. According to Salary.com, the cost of living sits 17 percent above the national average. It’s not the most affordable, but if you wanted a second career opening your gallery, this is the place for you. Likely, you won’t be alone either. Over 20 percent of the town’s population is 65 years and over.

Rutland

It’s another stately small town complete with quaint covered bridges and white church steeples. Over 15,000 people call Rutland home, and those enjoying their golden years can choose from the area’s two ski resorts, multiple golf courses, and 4,000 acres of national forest. The median home price is $137,900, and the cost of living is 9.9 percent higher than the national average. Over 21 percent of the population are seniors, so retirees will find a lively, like-minded community of individuals to spend time within the town.

Montpelier

As the capital of Vermont, this little gem nestles in the north-central area of the Green Mountain State. Like many other centers, classic architecture and an abundance of wilderness-related activities are hallmarks of this city. The population hovers around 7,300, with more than 20 percent being or retirement age. The median home price is 250,200, and the cost of living is 21 percent higher than the national average.

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Photo by Vladimir Soares on Unsplash

How to Retire Well In Tennessee

July 5, 2021 By Lindsey Boycott Leave a Comment

If you’re a golden-ager and the siren song of Graceland calls your name, you might want to know how to retire well in Tennessee. The state might be home to Elvis, but you’ll still need to do your research before deciding if you’ll become a resident retiree. There are many considerations, but here are a few suggestions to help make your decision easier.

How to Retire Well in Tennessee with the Cost of Living

According to the US Census Bureau, Tennessee’s senior citizen population (65 years and over) sits at 16.6 percent. Mild winters mean the silver fox set can enjoy the mountains, lakes, and rivers year-round, while big-city attractions and amenities offer a complementary experience. Cities like Chattanooga, Franklin, and Nashville rank high for their good-sized senior communities, lower cost of living, and fixed-income friendly tax rates.

By the numbers, Tennessee has the sixth-lowest cost-of-living in the United States. The average rent on a 2-bedroom apartment is $854, with the usual upticks in larger urban centers. Other costs like utility bills and healthcare come in close to the national average. If you’re looking for another financial silver lining, the state has no personal income tax, pension tax, or property taxes. However, there is a sales tax of 4 percent on food and food ingredients and 7 percent on all other tangible property. The good news is that prescription medication is tax-free.

How to Retire Well in Tennessee & Where

The median income for the Volunteer State sits at $53,320 (per capita $29,859). Depending on where one plans to retire, this figure may move up or down. If a retiree is working with a more modest nest egg, they may enjoy a smaller center like Pigeon Forge. With a per capita income of $20,478, this town is a preferred retirement destination for seniors who want a comparable monthly amount. And they would not be alone; over 20 percent of Pigeon’s 6,000 population are retired individuals.

Another Shangri La for the Elder Set might be the City of Crossville. It abounds with golf courses, a thriving retirement community, and a reasonable per capita income of $22,592. Seniors who need to stretch a dollar might appreciate that they don’t have to compete with six-figure salaries when buying the basics. Over 11,000 live here.

For those who like a more urban center, Knoxville might be the place for them. Over 187,000 live in this city, and 13 percent of them are senior citizens. With the Tennessee River running through it, there are endless opportunities for waterfront dining and recreational options that would be hard to find elsewhere. The per capita income is $26,430, which is marginally higher than some communities, but the city’s charms might be hard to ignore.

Retire Using These Apps

App	Fees and Minimum	Best for:
Betterment	0.25% per year no account minimum	Saving for retirement
Ellevest	$1-$9 per month no account minimum	Retirement especially for women
Personal Capital	Free	Planning retirement

Conclusion

If you’re hoping to follow the sun south but still want four seasons, Tennessee has lots to recommend it on the financial front. The low cost of living, affordable tax rates, and access to high-quality healthcare make this state a strong contender on anyone’s retirement wish list.

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Photo by Max Harlynking on Unsplash

Weekly Financial Wrap: AMC Stock, Small Business Employees, and Biden’s Tax Plan

June 6, 2021 By Luke Williams Leave a Comment

AMC Collects $587 Million in Sell-Off

AMC Entertainment Holdings Inc. has continued to make headlines after staying in the news all spring. AMC was able to sell off a large number of shares after seeing a surge in price, collecting $587 million on the sale.

Surge Due to Repeated Media Coverage

This surge is the result of this stock becoming the focus of retail investors around the world, especially those on the Reddit Group “Wall Street Bets.” If you plan on purchasing any AMC shares, be warned that it is highly volatile.

SA will discuss this more on Sunday’s edition.

U.S. Small Businesses Can’t Fill Job Openings

Small businesses across the country are reporting job openings that have yet to be filled. The National Federation of Independent Business reports that in May, 48 percent of small business owners in the United States have unfulfilled job openings.

This number is an increase from April, which saw 44 percent of small businesses report having unfulfilled openings. As a result, many small business owners have begun offering higher wages in an effort to attract new workers. If you are looking for full-time or even temporary employment, now is a great time to find a job at a small business close to you.

Coal Faces Global Spike in Demand, Leading to Higher Prices

While coal is seen as an environmentally damaging resource, its demand is starting to see global increases. Many prominent coal miners across the globe are currently dealing with production issues — further fueling the renewed demand the resource has received.

Safety-Related Setbacks

Unsafe work practices resulting in deadly mining accidents in Beijing have contributed to lower coal output and a spike in demand. The wise move would be to observe the surge and see how it is predicted to last before making any investments. “This is a bad spike to invest into. Mid-term fundamentals are still bearish,” James Stevenson, lead researcher for coal, metals, and mining at IHS Markit Ltd. in Houston, said.

President Biden’s New 15 Percent Minimum Tax Proposal Is a Step in the Right Direction

President Joe Biden recently announced his decision to go back on his proposed plan to enforce a 28 percent corporate tax hike. He will now look to set a minimum tax rate at 15 percent for companies.

The move comes as a result of Biden looking to compromise with the Republican party in an effort to move his infrastructure and tax plan through Congress. Investors across the country have praised the move, saying that it will help boost the market.

The originally proposed 28 percent corporate tax hike would be harmful to the market as it would cut the profits of companies across the country.

Unvaccinated Workers Plan to Take Employers to Court

While many Americans across the country have been vaccinated, those who have not are facing problems at work. As more media outlets report on workplaces letting go of their employees who refuse to take the vaccine, fired employees have threatened to sue their former employers.

The said employees have stated that they have no way of knowing if the vaccine is truly safe. They say that their employer has no legal right to fire them due to their resistance to the vaccine.

Opposers of the Lawsuit

Those critical of the lawsuit say that employees who refuse to receive the vaccine are foolishly endangering those around them. Time will tell which party is legally in the right.

Read More:

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Did You Receive $10,200 in Unemployment Tax Breaks? If Not, Do This

June 3, 2021 By Kathryn Vercillo Leave a Comment

Did you receive unemployment in 2020? Did you properly file that as unemployment income when you did your taxes? If so, then you did the right thing. However, in mid-March 2021, President Biden signed The American Rescue Plan. As a result, you may receive up to $10,200 in unemployment tax breaks. Learn more about this here.

What Is the American Rescue Plan?

The American Rescue Plan is part of a nearly $2 trillion pandemic relief bill that President Biden signed in March 2021. Typically, when you receive unemployment, you pay taxes on those funds. However, the COVID-19 pandemic led to unprecedented levels of unemployment. Biden signed that plan to waive taxes on some of that unemployment income. In other words, it’s a means to reduce taxes paid on unemployment in 2020.

Who Is Eligible to Get $10,200 Unemployment Tax Breaks?

If you received unemployment in 2020, then you might be eligible for the American Rescue Plan. Moreover, if you filed your tax return before the American Rescue Plan went into law, you’re likely eligible for up to $10,200 in unemployment tax breaks. After all, if you filed properly, then you paid those taxes on your unemployment income. Now you’re eligible for a refund because you weren’t obligated to pay the taxes after all.

Married couples who both received unemployment are eligible for a combined $20,400.

However, if either single or married couples made over $150,000 in modified adjusted gross income (not including unemployment payments), then they are not eligible for the refund.

When Will I Get $10,200 in Unemployment Tax Breaks?

The IRS will issue refunds to those people who receive the tax breaks. They began issuing those refunds in May 2021. However, payments are going out throughout the summer to eligible individuals and families.

Individual (single) tax filers with simple taxes may have already received their refunds. After all, they’re the group first slated to receive the funds. Married couples and people with more complicated taxes will receive theirs after that first group. Therefore, if you haven’t received yours, yet, then it might just be because it’s still on the way.

What to Do If You Haven’t Received Your Refund, Yet

If you believe you’re owed the unemployment tax breaks, then you can take a few steps.

First, consider whether you’re in the first round of payments, as described above. If not, then you might want to wait a little bit longer before taking action. Your payment should come through this summer.

Likewise, you’re more likely to receive your refund quickly if you previously signed up for IRS Direct Deposit. If you didn’t, then your check will arrive in the mail. Keep an eye out for it.

Another consideration is whether you owe any outstanding taxes. If you do, then the payment will automatically go towards those taxes instead of directly to you.

Check to see if you’re owed this refund. More details here.

Tip: You May Need to File Form 1040-X

Finally, check to see if you need to file an amended tax return. This is the most important part although most people will not have to do this.

In some instances, the American Rescue Plan reduces your taxable income in such a way that you become eligible for a tax credit or tax deduction that you didn’t qualify for when you filed your taxes. If so, then you are now eligible to receive the refund. However, the IRS won’t automatically send it to you. Instead, you have to file Form 1040-X.

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The Tax Deadline Is Almost Here: Do This Now!

May 14, 2021 By Tamila McDonald Leave a Comment

While tax day is usually on April 15, due to the COVID-19 pandemic, the federal (and some state) filing deadlines were changed to May 17, 2021. That means the filing due date is almost here and if you haven’t submitted your taxes yet, you need to take action. If you aren’t sure what you need to handle, here’s what you should do to make sure you meet the tax deadline.

Tackle Your Federal (and State) Returns

If you have everything you need to file, submit your federal and state tax returns by May 17, 2021. Filing a return late comes with some serious penalties, even if you are only a bit behind the deadline.

Ideally, you’ll want to file electronically. This gives you confirmation that you submitted your tax return on time, creating a level of protection. Plus, it’ll process faster, which works in your favor, especially if you’re owed a refund.

When it comes to state returns, it’s important to note that they may have separate deadlines. For some states, that deadline is technically already past, so you should file quickly to minimize any penalties. Others align with the federal deadline, including this year’s extended ones. While a few give residents more time, by filing now, you make sure you won’t forget.

Apply for a Tax Extension

If you legitimately can’t submit your tax return by May 17, 2021, then you should file for an extension. Applying is completely free and is surprisingly straightforward.

In most cases, all you’ll need to do is submit a Form 4868 to the IRS, and you’ll automatically get an extension. With that in place, you’ll have until October 15, 2021, to file your individual tax return. Plus, you’ll avoid failure-to-file penalties, which can be substantial.

Just be aware that if you file for an extension and you owe money, your payment due date isn’t extended. That payment still needs to arrive by May 17, 2021. Otherwise, you’ll face some penalties.

However, if you’ll either break even or end up with a refund, there’s usually no financial downside to delaying your filing. In some cases, it may even work in your favor. For example, it could give you extra time to find documents to prove you are eligible for credit or to wait for the late arrival of a critical tax form, such as a missing or corrected Form 1099 or Schedule K-1.

Send More Money to Your IRA

In many cases, the cutoff for funding your IRA for the current filing year is tax day. For 2020, that means you can make IRA contributions as late as May 17 and have them count toward your 2020 taxes.

If you haven’t already maxed out your 2020 IRA contributions, doing so could work in your favor. If you have a traditional IRA, those contributions may be tax-deductible, allowing you to reduce your tax burden before you finish filing.

For lower-income households, stashing money in an IRA could also make you eligible for the Saver’s Credit. This can also reduce your tax burden, as the credit can be worth as much as $2,000.

Otherwise, maxing your any IRA for 2020 could be a smart move. It may give you a chance to save more overall, as you’ll get a refreshed contribution limit for 2021.

Fund Your Solo 401(k) or SEP IRA

If you’re self-employed and have a Solo 401(k) or Simplified Employee Pension (SEP) IRA, you also have until May 17, 2021, to make contributions that apply to the 2020 tax year. In fact, if you file for an extension, you actually get until October 15, 2021, to fund one of those plans.

In many cases, these contributions can be deductible, at least partially. With a Solo 401(k), a portion of your “employer” contributions are considered business expenses. With a SEP IRA, there are deduction options, as well.

Contribute to Your 2020 HSA or MSA

Another deadline that got extended involves contributing to your 2020 health savings account (HSA) or medical savings account (MSA). Both of those can be funded until May 17, 2021, giving you more time to set money aside and potentially secure a deduction for your 2020 taxes.

Before you contribute more, you want to make sure you haven’t reached the contribution limit. That way, you’ll get a bigger tax benefit now and still have room to set money aside with 2021 contributions.

File Schedule H for Household Workers

If you have a qualifying household worker – like a nanny, landscaper, or maid – you may need to file a Schedule H by May 17, 2021. This is crucial for addressing employment taxes associated with paying these kinds of household professionals.

Now, not everyone who brings in household workers needs to file Schedule H. If you pay a bill for services through a company and aren’t paying the worker in cash wages, you may not have this responsibility. However, if you hire the worker independently, you may need to go down this road.

If you aren’t sure, it’s wise to discuss the situation with a tax professional. They can help you gauge your relationship with the household worker, ensuring you handle everything correctly.

Snag Your Unclaimed 2017 Refund

If you didn’t file your 2017 tax return and are owed a refund, you have until May 17, 2021, to complete your 2017 and snag that unclaimed money. If you don’t have your 2017 tax documents, you can request an income transcript from the IRS.

The transcript contains your reported wage information, which may be all you need to file. If you don’t handle this by May 17, 2021, you’ve missed the deadline to claim that refund.

Did you wait until the tax deadline to file, or have you already tackled it? Can you think of any other tips that might help filers as they finish up their taxes? Share your thoughts in the comments below.

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