Retirement can eliminate the morning commute, the office birthday cake nobody wanted, and the annual performance review. Unfortunately, it doesn’t eliminate tax season. In fact, your first year without a regular paycheck can make your tax return surprisingly complicated.
The biggest adjustment involves figuring out which income gets taxed, when the IRS expects its share, and how one financial decision affects another. A retirement account withdrawal might cover a new roof, for example, but it could also increase your taxable income and affect your Medicare premiums later. These seven mistakes can turn a promising financial fresh start into an expensive lesson.
