January 2021 Volume 1
The purpose of Kappa Beta Delta is to encourage and recognize scholarship and accomplishment among students of business pursuing associate degrees. To encourage and promote personal and professional improvement and a life distinguished by honorable service to humankind.
Tax Benefit and Credits: FAQs for Retirees
Lots of questions can come up about income taxes after one has retired. Listed are answers to just a few common questions from retired taxpayers.
What types of income are taxable? Some common types of taxable income include military retirement pay, all or part of pensions and annuities, all or part of individual retirement accounts (IRA), unemployment compensation, gambling income, bonuses and awards for outstanding work, and alimony or prizes.
What types of income are non-taxable? A few examples of non-taxable income are veteran's benefits, disability pay for certain military or government-related incidents, worker's compensation, and cash rebates from a dealer or manufacturer of an item you purchased.
Why is my pension taxed? It depends on how the money was put into the pension plan. For example, if all the money were contributed by the employer or the money was not taxed before going into the plan, it would be taxable. When your contribution is from already-taxed dollars, that portion of the pension is not taxed, but must be recovered over your life expectancy.
* This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.
Tip adapted from IRS
Practicing Gratitude in the New Year
Instead of beginning the new year with a list of resolutions, start by examining the good things that are already in your life by practicing gratitude.