Year-End Tax Planning 2026: A Two-Year Guide for Retirees The best year-end tax plan for 2026 is a two-year plan. Instead of asking how to cut this year’s bill, ask how to pay the least federal tax across 2026 and 2027 combined. Rates and deductions for the two years should look similar, which makes the…
The short answer: Three changes from the One Big Beautiful Bill reshape itemizing for retirees. The SALT cap jumps to $40,000 for 2025–2029 (with a phase-out starting at $500,000 MAGI), a new 0.5% AGI floor reduces charitable deductions starting in 2026, and high-income itemizers in the 37% bracket face an additional cap. Non-itemizers also get…
Required Minimum Distributions (RMDs) are mandatory annual withdrawals from most pre-tax retirement accounts beginning at age 73. The amount is calculated using your prior year-end balance divided by an IRS life expectancy factor. RMDs cannot be avoided, but they can be planned around — through Roth conversions before age 73, Qualified Charitable Distributions, withdrawal sequencing, and coordination with Social Security and Medicare to reduce lifetime taxes and IRMAA exposure.
The short answer is: it depends on the type of retirement income. Maryland does tax some forms of retirement income, but also offers various exemptions and exclusions. In this comprehensive guide, we’ll break down how different types of retirement income are taxed in Maryland and provide insights to help you plan your retirement finances effectively.
Yes — and meaningfully so. South Carolina exempts Social Security entirely, allows stacking retirement deductions for residents 65 and older, has no estate or inheritance tax, and dropped its top income tax rate to 5.21% beginning in 2026. For retirees relocating from higher-tax states like Maryland, South Carolina ranks among the most tax-friendly retirement destinations…
As a successful retiree or pre-retiree who has worked hard to build your wealth, you deserve to enjoy the fruits of your labor without unexpected Medicare costs eroding your retirement income. Yet many financially successful individuals are surprised when they discover that their Medicare premiums can be significantly higher due to IRMAA surcharges.
The enhanced senior deduction is a temporary federal income tax deduction of $6,000 per eligible person ($12,000 on a joint return if both spouses qualify) available for tax years 2025 through 2028. You qualify if you are 65 or older, have a valid Social Security number, and, if married, file jointly. It phases out at 6% of modified adjusted gross income above $75,000 single or $150,000 joint, and is available whether you itemize or take the standard deduction.
If you’re 65 or older and live in Maryland, you may be eligible for a state tax credit worth up to $1,750 per year—whether or not you’re retired. The credit is based entirely on your age, residency, and income level. Combined with Maryland’s pension exclusion and full Social Security exemption, these three programs can reduce your state tax bill by 50–70% or more.
The numbers tell a concerning story: Many surviving spouses see their household income drop by 25-50%, yet find themselves paying higher tax rates on what remains. Medicare premiums can spike by thousands of dollars. And Social Security income that once supported two people must now sustain one.
This guide lays out a clear 2026 tax calendar for retirees, highlights the most common “gotchas,” and gives you a practical framework to stay ahead—without turning retirement into a paperwork treadmill.