Things That Are Taxed

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Many things in the United States are taxed. This is because governments love to get their hands on our money, whether it’s income tax, sales tax, or some other type of tax. In this guide, we will look at some of the most common types of taxes that people have to pay. We will also discuss minimizing your tax liability and keeping more of your hard-earned money in your pocket!

Income Tax

Income tax is probably the most common type of tax that people have to pay. This is a tax on your earnings from employment, self-employment, investments, and pensions. The amount of income tax you have to pay depends on your taxable income and the tax rate that applies to you. You can minimize your income tax liability by claiming deductions and tax credits.

Annuities can help reduce your income tax liability in retirement.

Sales Tax

Sales tax is another common type of tax. This is a tax you pay on purchasing goods and services. The sales tax you have to pay depends on the state or country in which you live. In some states, there is no sales tax at all! You can minimize your sales tax liability by purchasing items exempt from sales tax, such as food and medicine.

Property Tax

Property tax is another type of tax that you may have to pay. This is a tax on the value of your real estate property. The amount of property tax you have to pay depends on the assessed value of your property and the tax rate that applies to you. You can minimize your property tax liability by appealing your assessment and taking advantage of tax breaks for homeowners.

Estate Tax

An estate tax is a tax on the value of your estate after you die. The amount of estate tax you have to pay depends on the value of your estate and the tax rate that applies to you. You can minimize your estate tax liability by making gifts to charity or setting up a trust. In addition, annuities and life insurance can help avoid this tax.

Gift Tax

A gift Tax is a tax on the value of gifts you give to others. The amount of gift tax you have to pay depends on the value of the gift and the tax rate that applies to you. You can minimize your gift tax liability by ensuring that your gifts are not excessive in value.

Excise Tax

An excise tax is a tax on selling specific products, such as alcohol, tobacco, and gasoline. The excise tax you have to pay depends on the product you are buying and the tax rate that applies to you. Therefore, you can minimize your excise tax liability by avoiding purchasing taxed products.

Capital Gains Tax

Capital gains tax is a tax on the profit you make from selling assets, such as stocks, bonds, and real estate. The amount of capital gains tax you have to pay depends on your profit and the tax rate that applies to you. You can minimize your capital gains tax liability by investing in assets not subject to capital gains tax, such as index funds and municipal bonds.

Payroll Tax

Payroll tax is a tax that you pay on your wages and salaries. The payroll tax you have to pay depends on your income and the tax rate that applies to you. However, you can minimize your payroll tax liability by claiming deductions and credits.

Self-Employment Tax

Self-employment tax is a tax that you pay on your self-employment income. The amount of self-employment tax you have to pay depends on the amount of your income and the tax rate that applies to you. You can minimize your self-employment tax liability by claiming deductions and credits.

Medicare Tax

Medicare tax is a tax that you pay on your wages and salaries. The amount of Medicare tax you have to pay depends on the amount of your income and the tax rate that applies to you. You can minimize your Medicare tax liability by claiming deductions and credits.

Social Security Tax

Social Security tax is a tax you pay on your wages and salaries. The amount of Social Security tax you have to pay depends on the amount of your income and the tax rate that applies to you. However, you can minimize your Social Security tax liability by claiming deductions and credits.

Import Tax

Import taxes are taxes you pay on goods and services you import from other countries. The amount of import tax you have to pay depends on the value of the goods and services you are importing and the tax rate that applies to you. You can minimize your import tax liability by importing goods and services exempt from import tax, such as food and medicine.

Environmental Tax

Environmental taxes are taxes you pay on activities that harm the environment, such as pollution. The amount of environmental tax you have to pay depends on the activity that you are engaging in and the tax rate that applies to you. You can minimize your environmental tax liability by reducing your pollution and recycling.

Next Steps

As you can see, there are many ways to reduce your tax liability in retirement. You can take advantage of deductions, credits, and exemptions. You can also invest in assets that are not subject to taxation. Please get in touch with us for a quote if you have any questions about minimizing your retirement tax liability. We would be happy to help!

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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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