Several countries with a federalist government structure divide the power between the federal government and the states. However, not all countries allow both to impose an income tax on the citizens. This case is unique to the United States. The United States, being a federal system that it is, collects tax at the federal level while also allowing the fifty states to collect tax as well.

As it is widely understood, getting tax refunds has a negative impression on your financial management as it shows that you overpaid on your taxes during that particular year. Despite this, most individuals look forward to tax refunds, as evident from the statistics; over 80% of taxpayers receive a refund with a massive amount of $2,872 per filer.

Marriage as it turns out changes not only you but how you pay your taxes too. If you choose to change your name as well as your place of residence after marriage, this is one of the first changes your income tax return form will see. Make sure that the information you put in this form and the records at the Social Security Administration (SSA) is the same.

While nobody likes doing their taxes, it’s something you have to do to keep the government running like a well-oiled machine. Taxes may be direct or indirect. Direct taxes are paid out by businesses and individuals on the basis of their income or earnings and cannot be legally avoided. Indirect taxes on the other hand are a little different, they are levied on goods and services which in turn bumps up their costs.

So many things change for a person after retirement. There will be neither a regular job nor a regular income. But there will be a lot of time to meet friends, read books, take up a hobby, or travel to new places. Thus there will be a lot of leisure time to do everything that was put on hold due to jobs and other responsibilities and obligations.

Retirement can be a little hard on your bank accounts considering the excessive tax rates prevalent in most states. Hence, when looking for a place to reside after retirement, it is necessary for retirees to find states that don’t charge any taxes on social security. Not just low taxes on social security, but there should be low income, sales, and property taxes too.

After working for nearly all their lives, most people look forward to a peaceful and hassle-free retirement. The lack of deadlines and work pressures does make things easy for retirees, but the flip side of a retired life is that the income reduces drastically. Also, if the state where you have retired to has unfriendly tax laws, then your savings will be further impacted.

Often regarded as the golden years of one’s life, retirement provides seniors with a much-needed respite from life’s hustles. But retiring comes with its own set of challenges, including financial ones. Fortunately, planning ahead of time and understanding various retirement plans and financial strategies can help one prepare for the years to come.