Thanks Chris. This is probably the easiest to follow explanation of taxes I have seen. I'm definitely saving this video to my retirement folder for future reference. I really appreciate you taking the time to provide us with so many resources. I continue to send as many fellow FERSonians to your website as possible.
Great video! One important thing to note is that if Someone is contributing to a traditional TSP or 401K they can deduct those amounts as well before calculating the taxes since they are pre-tax contributions.
It's not boring at all. I just retired from USMS on 12/28 and I've been soaking up your information for the past year. Thank you for sharing and confirming some things!
Merry Christmas, thanks. Excellent explanation, I'll add to list I share with others trying to figure out finances. You might want to note the working spouses TSP/IRA/FSA/HSA should be deducted from their annual salary number when calculating taxable income.
Great video, Chris. This is a major concern of mine as a new retiree. I have recently made an appointment with my CPA to discuss this matter before I find out the hard way. Thank you for this information. Please keep making these videos.
Great video. Thank you. Does your video describe federal taxes only? Is there a simple explanation for how to know how much state taxes to withhold? I’ve always used TurboTax and have never really understood how the tax brackets works so I appreciated your video.
There's no quick way since no 2 states are the same. You have to look up your state's tax rates on the state tax organization's site. Some states don't have income tax. Some have income tax for working, but not retirement income. Some states have a flat tax, some have progressive tax rates. Some tax TSP withdrawals, some don't. You'll just have to research your particular state.
I think a better way to think of your actual effective tax rate for your income would be to divide what you pay by your gross income. It would feel better anyway. At least that's how I figure it
Legend! When it comes to the RAS and Social Security, the RAS is taxed as straight income. When you lose the RAS and collect Social Security, your SS amount is taxed "only" at 50% federally. Therefore your taxes should be lower once you collect Social Security. State taxes may vary. Is that correct? Thank you for everything you do.
Thank you for the awesome explanation. While calculating my FERS retirement and Social Security, including my wife’s Social Security. I am assuming I would not add my TSP withdraw because it is automatically taxed at 20% is this correct? Because if they’re already withholding, and then I added it into my calculation and withhold again that would be like double taxation the way I see it. Thanks for everything you do to help federal employees.
Far beyond the scope but in short, when you are coming up with taxable income, you have to include all taxable income, including TSP withdrawals since that is raising your overall taxable income and thus raising your tax bracket potentially. TSP withholds 20%, but that doesn't mean that you will owe 20%. You may owe 12% or 24% or some other number.
Thanks Chris. This is probably the easiest to follow explanation of taxes I have seen. I'm definitely saving this video to my retirement folder for future reference. I really appreciate you taking the time to provide us with so many resources. I continue to send as many fellow FERSonians to your website as possible.
Great video! One important thing to note is that if
Someone is contributing to a traditional TSP or 401K they can deduct those amounts as well before calculating the taxes since they are pre-tax contributions.
It's not boring at all. I just retired from USMS on 12/28 and I've been soaking up your information for the past year. Thank you for sharing and confirming some things!
Fantastic video on a challenging topic. I’ve never heard it explained in such a concise and simple way.
Thank you so much. I feel like I’m so dumb on all of this. But I just need to learn it. Your information helps me immensely.
Merry Christmas, thanks. Excellent explanation, I'll add to list I share with others trying to figure out finances. You might want to note the working spouses TSP/IRA/FSA/HSA should be deducted from their annual salary number when calculating taxable income.
Excellent information, thanks Chris!
Content is useful and super easy to follow. Thanks for putting this together!
Great video, Chris. This is a major concern of mine as a new retiree. I have recently made an appointment with my CPA to discuss this matter before I find out the hard way. Thank you for this information. Please keep making these videos.
Another informative video paramount to financial planning.
Another clear video,
thanks for what you do!
Another great explanation. Thank you.
Thanks Chris, great presentation! Hope Santa leaves that Yeti under my tree. Merry Christmas!
Thank you for the info Chris and doing what you are doing.
So simple when you explain it. Thank you so much for taking the time to educate us. Please continue to post. Happy Holidays!
Your comment was picked. Send me an email chris@barfieldfinancial.com and I'll send you a Yeti mug.
Good morning and Happy New Year. Thank you so much! Just sent an email.
Chris, great tax info!
Thanks! Great simple explanation on how to plan for next year!!
All these videos are great! Please continue making them!
Another legit video. Gracias.
Nicely done sir.....thank you.
Great info. Thanks Chris!
Good info Chris! Keep it coming!
Great stuff as usual Chris. Looking forward to hearing how Jeff Fersonian is doing.
Good stuff as always. Thanks Chris!
Great video. Thank you. Does your video describe federal taxes only? Is there a simple explanation for how to know how much state taxes to withhold? I’ve always used TurboTax and have never really understood how the tax brackets works so I appreciated your video.
There's no quick way since no 2 states are the same. You have to look up your state's tax rates on the state tax organization's site. Some states don't have income tax. Some have income tax for working, but not retirement income. Some states have a flat tax, some have progressive tax rates. Some tax TSP withdrawals, some don't. You'll just have to research your particular state.
You’re getting really good at the TH-cam thing. Keep up the good work!
Great info as always, thank you!
I think a better way to think of your actual effective tax rate for your income would be to divide what you pay by your gross income. It would feel better anyway. At least that's how I figure it
Thanks, Chris!
Legend! When it comes to the RAS and Social Security, the RAS is taxed as straight income. When you lose the RAS and collect Social Security, your SS amount is taxed "only" at 50% federally. Therefore your taxes should be lower once you collect Social Security. State taxes may vary. Is that correct? Thank you for everything you do.
States vary, yes. Most states do not tax SSA benefits. Federally, 0%, 50% or 85% of your SSA benefits can be taxed, depending upon how much you make.
Thank you for the awesome explanation. While calculating my FERS retirement and Social Security, including my wife’s Social Security. I am assuming I would not add my TSP withdraw because it is automatically taxed at 20% is this correct? Because if they’re already withholding, and then I added it into my calculation and withhold again that would be like double taxation the way I see it. Thanks for everything you do to help federal employees.
Far beyond the scope but in short, when you are coming up with taxable income, you have to include all taxable income, including TSP withdrawals since that is raising your overall taxable income and thus raising your tax bracket potentially. TSP withholds 20%, but that doesn't mean that you will owe 20%. You may owe 12% or 24% or some other number.
Is there a Yeti tax deduction? 😎 As always, thank you for the great and easy to follow content!
And all these years I was under impression that I pay 24% on the whole thing! 😂
Thanks Chris! 🎉