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What Is a Trust Fund â How It Works, Types & How to Set One Up
10 Things Youâll Spend More on in Retirement
Even if your real retirement is years away, youâve already had some practice.
That came during the pandemic lockdown and into its aftermath, when many of us were tucked away at home, working remotely. Except for the part where youâre actually working and getting a full paycheck, this is similar to what life is like for many retirees.
So ask yourself: How did your spending fare on that retirement test drive?
Before you can determine how much you will need to save for a fulfilling retirement, you first need to know how much you will spend in retirement. Youâll also need to factor in soaring prices on everything from gas to groceries. Sure, inflation affects everyone, but it could hurt more in retirement when your income will probably be lower.
Financial planners have estimated that retirees need 80% or more of preretirement income to maintain their standard of living, though individual situations vary greatly. Another data point that correlates: According to the Bureau of Labor Statisticsâ annual survey on consumer spending, the average retired household spends 25% less than the average working household each year.
That said, some items to do stand out in a retired household, including big-ticket expenses such as health care and travel. Hereâs a look at 10 budget categories where retirees are likely to spend more and some tips on keeping costs in check.
- SEE MORE 10 Things You’ll Spend Less on in Retirement
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Tax Changes and Key Amounts for the 2022 Tax Year
Now that this year’s tax filing season is over, it’s time to start thinking about next year’s return. After all, the more tax planning you do, the more money you may be able to save. But proper tax planning requires an awareness of what’s new and changed from last year â and there are plenty of tax law changes and updates for the 2022 tax year that savvy taxpayers need to know about.
Big tax breaks were enacted for the 2021 tax year by the American Rescue Plan Act, which was signed into law in March 2021. But most of those tax law changes expired at the end of 2021. As a result, the child tax credit, child and dependent care credit, earned income credit and other popular tax breaks are different for the 2022 tax year than they were for 2021. Other 2022 tweaks are the result of new rules or annual inflation adjustments. But no matter how, when or why the changes were made, they can hurt or help your bottom line â so you need to be ready for them. To help you out, we pulled together a list of the most important tax law changes and adjustments for 2022 (some related items are grouped together). Use this information now so you can hold on to more of your hard-earned cash next year when it’s time to file your 2022 return.
- SEE MORE 20 Most-Overlooked Tax Deductions, Credits and Exemptions
How to Negotiate Medical Bills: A Step-by-Step Guide
Whatâs scarier: The medical emergency or the bill after? If you have medical bills piling up that you canât afford, hereâs a Penny Hoarder guide to paying them.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
Dear Penny: Am I Wrong if I Don’t Leave My Family an Inheritance?
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
Chapter 2: What to Include in Your Budget
If youâre making a budget, congrats! For many people, having more money seriously adds to their freedom â and budgeting is a great way of giving yourself as much financial freedom as possible in the future, as well as improving…
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The post Chapter 2: What to Include in Your Budget appeared first on MintLife Blog.
2021 Tax Returns: What’s New on the 1040 Form This Year
Time is running out if you haven’t already filed your 2021 federal tax return. For most people, the tax return filing deadline is April 18 this year (residents of Maine and Massachusetts get one extra day). So, for all you tax procrastinators out there, it’s time to get moving. One of the first things you should do is collect and organize your tax records. If you’re going to file your own 1040, you should also check out tax software options. If you need more time to file your return, request a tax filing extension (although you’ll still have to pay any tax you expect to owe). And, no matter when you fill out your 2021 tax return, you first want to familiarize yourself with the tax law changes that may impact it.
Many (but not all) of the new items on the 2021 1040 form come from the American Rescue Plan Act, which was enacted last March. This Covid-relief bill made changes to the child tax credit, child and dependent care credit, earned income tax credit, and more. Other changes stem from the expiration of earlier Covid-related provisions that expired at the end of 2020. There are a few modifications to some of the main 1040 schedules, too. And, of course, there are the normal inflation-based adjustments that occur every year.
There are many reasons why you should know and understanding these changes up front. First and foremost, it very well may result in a larger tax refund or a smaller tax bill. You’re also likely to get through your return faster if you’re already aware of any new twists and turns. If someone else prepares your 1040, it will be easier to catch any errors when you review the return. But since “Tax Day” is right around the corner, you don’t have much time left to get up-to-speed on what’s new and changed for your 2021 tax return. So take a look at our list below and study up now so you know what to look for before tackling your 1040.
- SEE MORE 11 Reasons to File a Tax Return Even If You Don’t Have To