The argument started as we sat down for Easter dinner. My cousin had recently sold his home and my uncle was giving some, incorrect, tax advice on how he now needs to buy a new home to avoid paying taxes. I reminded my uncle that this only applies to rental and vacation properties and not his primary house, so he will have no taxes on … Continue reading Taxes on Selling a Home in Michigan
Over Christmas I spent some time with my brother in-law in New York City. Over a couple $13 beers, New York is ridiculously expensive, we started talking about a home that he was considering buying. The home didn’t look a whole lot different than my house here in Michigan. About the same square footage, slightly smaller yard, and even the same kitchen cabinets. Yet, there … Continue reading How the 2018 Tax Changes will Impact Michigan Retirees and Planning Tips
By the time I finish writing this post, it may already be obsolete. First, the new proposed tax bills could die like the proposed healthcare bill from earlier in the year and never make it anywhere. Second, there are currently two proposals (The House Proposal and The Senate Proposal) and there is a good chance that the final legislation looks much different than the current … Continue reading 5 Things to do Now in Michigan to Take Advantage of the Proposed Tax Bill
If you earned $50,000 per year in a 35 year career, you would have paid around $110,000 in social security taxes. Also, let’s not forget that your employer would have paid the same amount of taxes on your behalf, which means that there would have been nearly $220,000 paid in social security taxes throughout your career. Well, the good news is that at least when … Continue reading Taxes on Social Security in Michigan
Can I interest you in warm sunny winters, white sandy beaches and not having to pick up a shovel anymore? Oh, and how about not having to pay Michigan state income taxes on your retirement income? That sounds like a nice break from the cold, snowy, potholed and high-taxed Michigan winter. So, for those of you who have a house (or thinking about buying one) … Continue reading The Michigan Homestead Tax Break
I’ve got a little good and bad news for you when you reach retirement. The good news is that there is a really good chance that your taxes will go down in retirement! The bad news is that these taxes aren’t gone completely. In fact, taxes in retirement can actually be more complicated. For example, in retirement you typically don’t have to pay FICA taxes … Continue reading Michigan Taxes in Retirement
At first glance, the GOP tax proposal that was released should be a huge benefit to retirees here in Michigan. Probably the biggest reveal that came from the announcement is that the standard deduction will be nearly doubled. Here are the highlights: Currently, the standard deduction for a single individual is $6,350 and $12,700 for a married couple filing a joint tax return. … Continue reading Could the Trump tax proposal actually hurt Michigan retirees?