There are some retirement accounts that are already taxed as a person pays into them, and these are not taxed again if a person receives income from them at a later time.
Atlanta, GA – Once a person is fully retired, they will usually not have income from a standard job or have forms such as W-2 or 1099 sent to the IRS related to their employment. This means that their tax situation can be quite different from working individuals, but they can still owe the government money for various reasons.
Lawyers who focus on tax law can help both retired people and those who are still employed solve any of their tax problems.
Social security income taxes
People pay into the social security system during their entire working lives to be able to receive consistent income after they retire. The taxation rules for social security that is paid out are much different from regular income taxes. When a person only receives social security and has no other income while retired, they will probably not owe any tax on the social security benefits and they can live relatively tax free. However, when a person receives social security as well as income from other sources, this is called combined income and it tends to be taxed at a level that reflects the amount of additional income added aside from the benefits. Atlanta tax lawyers should be asked about how much tax will be owed by people who have both social security and either a job or investments that count as taxable income.
Retirement accounts, pensions, and similar investments
Georgia tax lawyers also assist with managing various kinds of accounts that pay people years after they are set up. Many people start an IRA or 401(k) years in advance and start to withdraw income from these investments after they are no longer working. The money extracted from these funds and investments is usually taxed because it will count as income, however deductions can help to reduce the tax burden depending on the person’s expenses and what the money was used for. There are some retirement accounts that are already taxed as a person pays into them, and these are not taxed again if a person receives income from them at a later time. Tax lawyers can deal with tax issues from pension plans when a retired person starts to draw money from them. This is considered income as well if a person receives money out of their pension regularly.
Other means of wealth generation
Estate planning lawyers sometimes set up trusts or other kinds of financial planning. People can set these accounts up for themselves, or they may be inherited from other family members. If any trusts or other investments are paying a retired person, this likely has to be reported as income and there are certain tax rules that apply.
Getting help from an attorney
There are lawyers available in every jurisdiction of the United States who can assist with these matters and other legal issues. USAttorneys.com is a referral service that can provide more information at 800-672-3103.
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