Retirement Saving Assistance
On December 20, 2019, President Trump signed the “Setting Every Community Up for Retirement Enhancement” (SECURE) Act. This new law does several things that will affect your ability to save money for retirement and influence how you use the funds over time. While some provisions are administrative in nature or intended to raise revenue, most of the changes are taxpayer-friendly measures designed to boost retirement savings. Information from Kiplinger Today (2/14/20)
Social Security Benefits Not Necessarily Tax Free
If your provisional income is less than $25,000 ($32,000 for married couples filing a joint return), your Social Security benefits are tax-free.
If your provisional income is between $25,000 and $34,000 ($32,000 and $44,000 for joint filers), then up to 50% of your benefits are taxable.
If your provisional income is more than $34,000 ($44,000 for joint filers), then up to 85% of your benefits are taxable. (Kiplinger
Most pensions are funded with pretax income, and that means the full amount of your pension income would be taxable when you receive the funds. Payments from private and government pensions are usually taxable at your ordinary income rate, assuming you made no after-tax contributions to the plan.
IRS Data from Michigan Tax Returns
Michigan residents reported an average income of $64,041 on their 2017 federal tax returns, according to the most current state-level data from the Internal Revenue Service.
That’s up 3.5% from the previous year and 33% from 2009, the depth of the recession, the data show
Meanwhile, the state’s collective adjusted gross income increased from $218 billion to $300 billion, or 37%, between 2009 and 2017, the result of both income growth and higher employment. Read the entire article at https://www.mlive.com/news/2020/02/highlights-of-irs-data-from-michigan-tax-returns.html
Supreme Court to Review Affordable Care Act Decision That Jeopardizes Health Care for Millions
LANSING – The U.S. Supreme Court today agreed to review a lower court’s decision that found the individual mandate of the Affordable Care Act (ACA) unconstitutional, at the urging of Michigan Attorney General Dana Nessel and 19 other attorneys general and the governor of Kentucky, who collectively filed the petition for review. Read more at the Michigan Department of Attorney General web site.
Virus Information from BC-BS
Keep your Medicare Card Safe
Guard your card. Identity theft can happen when someone uses your personal information without your consent to commit fraud or other crimes. Guard your Medicare Number and card, and keep your Social Security Number safe.
Editor’s note: June Morse may be contacted at email@example.com or 517-886-9323.
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