You are receiving this email because you signed up to receive Bob Carlson's free e-letter Retirement Watch Weekly, or you purchased a product or service from its publisher, Eagle Financial Publications. [Carlson's Retirement Watch Weekly] [Retirement Reports](www.retirementwatch.com/retirement-resources/) [Retirement Articles](www.retirementwatch.com/retirement-articles/) Brought to you by Eagle Financial Publications Plan Now to Avoid Stealth Taxes this Year by Bob Carlson
Editor, [Retirement Watch]( 05/14/2023 SPONSORED [This AI Revolution Could Affect Your Retirement](
[image]( Thanks to AI, economists from MIT, Harvard, and Boston College believe that we are about to witness the explosion of the biggest wealth gap we've ever seen before in history. And with what AI can do, who can disagree with them? But fortunately for retirees, there is a way to profit from all of it. [To see how, simply click here now to see why over 100 million people are racing into the most powerful tech in historyâ¦]( [CLICK HERE...]( Fellow Investor, [Bob Carlson]Retirees and near-retirees need to worry more about Stealth Taxes than regular income taxes. Stealth Taxes include the amount of Social Security benefits added to gross income, the Medicare premium surtax (also known as IRMAA), the 3.8% net investment income tax and more. Some Stealth Taxes are directed specifically at retirees, such as the tax on Social Security benefits and the Medicare premium surtax. Others just happen to catch more retirees than other taxpayers. I call them Stealth Taxes because they increase income taxes without Congress enacting a tax rate increase. Instead, gross income is increased or an additional amount is added to regular income taxes. The key to the Stealth Taxes is adjusted gross income (AGI), because that is the starting point for computing most of the Stealth Taxes. AGI is on line 11 of the current 1040. Most of the Stealth Taxes require that some tax breaks be added to AGI to compute what is called modified AGI or MAGI. For most people, computing MAGI involves only adding any tax-exempt interest to AGI. Some people might have to add other items, such as tax-exempt foreign-earned income, and some of the Stealth Taxes have small differences in their computation of MAGI. But for most people, MAGI is the same as their AGI or is AGI plus tax-exempt interest. Most Stealth Taxes are computed using that yearâs MAGI. But the Medicare premium surtax is determined using MAGI from two years earlier. Before putting away your 2022 income tax return, make a note of your AGI and see if it triggers any of the Stealth Taxes or if you are in a high Stealth Tax bracket (especially for the Medicare premium surtax). Then, consider actions you can take the rest of this year to reduce your 2023 AGI. The first step is to add all the income this year that is mandatory or over which you have no control. This income includes taxable Social Security benefits, any pension, required minimum distributions from IRAs and other retirement accounts, annuity payouts, interest and dividends from taxable account holdings and perhaps other sources. The total is a good estimate of your base or minimum AGI for 2023. The second step is to determine how close your base AGI is to triggering the Stealth Taxes or to the beginning or ending of a Stealth Tax bracket. For example, the Medicare premium surtax has six brackets. The monthly surtax in 2023 varies from $66 to $362, depending on the bracket youâre in. [URGENT WARNING: Millions of Retirements Are At Risk](
[image]( Congress is spurring on the most dangerous retirement threat of the last 50 years. Americaâs top retirement researcher reveals the deadly truth behind this government move⦠Plus the ONLY way to fully protect your wealth in the coming months. [Click Here for the Full Story.]( [CLICK HERE...]( The third step is to estimate the money you are likely to spend this year and determine the amount by which the spending exceeds your base AGI. The fourth step is to decide the sources of the cash for the additional spending by considering the effect of the sources on your income taxes and your Stealth Taxes. When youâre close to triggering a Stealth Tax or being pushed into the next higher bracket, consider taking the cash from tax-free sources, such as distributions from Roth IRAs or health savings accounts. Or you might want to sell investments in taxable accounts that will generate tax losses or small capital gains. When additional taxable income wonât trigger or increase the Stealth Taxes, you might want to take the cash from taxable sources, such as distributions from traditional IRAs or 401(k) s. That reduces the future income from those taxable sources and saves tax-free and low-tax sources for years when you might need them to avoid Stealth Taxes. Finally, you want to consider how to avoid the Stealth Taxes in the future. The best strategies involve taking money out of traditional retirement accounts and paying the taxes today to reduce future ordinary income. To a better retirement,
[Bob Carlson]
Bob Carlson
Editor, Retirement Watch Weekly Editorâs Note: The 2020s are set to become the WORST DECADE FOR RETIREMENT in American history. Yeah, itâs bad news. But the good news is that I wrote a FREE book that will give you ALL the tools youâll EVER need to live an amazing retirement, regardless of what happens with inflation, the stock market, Fed interest rates, or any election results. But the only way to get the bookâ¦is by [clicking this link right here.]( SPONSORED [Your âAhaâ A.I. Trading Moment Is Waiting](
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[Finding Higher Returns With Low Risk]( New to the Retirement Watch Community: SeniorResource.com Susan from Cleveland writes: "This April, my husband was laid off from a company he was employed with for 20+ years and lost his employerâs health insurance. He is a veteran and is receiving his healthcare from the VA, so he did not have to enroll in Medicare. However, I enrolled in Medicare since I am turning 65 soon but am not sure if I enrolled properly because my Medicare is costing me an extra $506 for Part A and $164.90 for Part B. I thought Part A was free! Please explain what I should do to correct my mistake." [Click here for the answer.]( About Bob Carlson: [Bob Carlson]Robert C. Carlson is the author of the books The New Rules of Retirement and Retirement Tax Guide, editor and investment director of the popular retirement newsletter, Retirement Watch, and editor of the free weekly e-letter, Retirement Watch Weekly. Bob is a frequent speaker at investment conferences around the country, and you can also hear Bob as a featured guest on nationally-syndicated radio shows, such as The Retirement Hour, Dateline Washington, Family News in Focus, The Michael Reagan Show, Money Matters and The Stock Doctor. To ensure future delivery of Eagle Financial Publications emails please add financial@info2.eaglefinancialpublications.com to your address book or contact list. View this email in your [web browser](. This email was sent to {EMAIL} because you are subscribed to Dividend Investor Daily. To unsubscribe please click [here](. If you have questions, please send them to [Customer Service](mailto:customerservice@eaglefinancialpublications.com). Legal Disclaimer: Any and all communications from Eagle Products, LLC. employees should not be considered advice on finances. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized advice on finances. Eagle Financial Publications - Eagle Products, LLC. - a Salem Communications Holding Company
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