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4 ways to cut your tax bill in retirement
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Entering retirement can require a series of adjustments from how you spend your time to how you allocate your income. Retirement also has a direct effect on your taxes, providing access to valuable tax benefits you may not realize. Here are four lesser-known tax breaks you could be eligible for if you are planning to retire in 2023. 1. Higher standard deductions and income thresholds More income may be exempt from taxes during retirement due to higher standard deductions and income thresholds. In 2023, taxpayers aged 65 and over can take an extra $1,500 standard deduction ($3,000 for married couples filing jointly). That is in addition to the regular standard deduction of $13,850 for single filers and $27,700 for married couples. This extra deduction does not apply if you itemize. If you or your spouse recently turned 65, you may want to calculate your taxes using both itemized and standard deduction formulas to determine which is more favorable. Many retirees find it no longer mak...
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