You may have stopped punching the clock at work, but Uncle Sam hasn’t: Retirees still need to pay income taxes.
Once older Americans have left the workplace, they may be generating income from a variety of sources, including Social Security, pension payments and withdrawals from various retirement accounts.
Instead of having a set amount of federal taxes withheld from their pay — the way it was when they were working — they now have to write a check for estimated amounts to the IRS four times a year
“With estimated tax payments, there’s the issue of making sure they actually paid the tax,” said Harjit Virk, a CPA and senior associate with Getzel Schiff & Pesce LLP in Woodbury, New York
“Sometimes you have to send reminders when the payments are due,” he said.
Here’s how to simplify your tax payments so that you can get back to enjoying your retirement.