Retired last year – how to do my taxes this year
I retired July 1, 2024. I received a severance package which I put in the bank and am using to live on along with my social security until my husband can get social security and Medicare in 3 years. I rolled over my company 401K to my IRA. I cashed out my pension which was rolled over to my IRA as well. I am not currently taking any money from the IRAs. So, for 2024 taxes I have a bigger income than I’ve ever had and also am getting interest from the savings accts the severance pay went into. I have usually done my own taxes using the 1040 ez form. I’m wondering if I should use a professional service this year since I’m not even sure what or how I need to report everything that happened in2024. Will it be very complicated or pretty straightforward?
Terry Says
I think this would be a good year to pay for a tax preparer. You should be getting a 1099 for your deposit accounts, and that severance package –and might actually owe taxes, or even face a penalty for not making estimated taxes.
And it may make a portion of your SS taxable.
AND, are you on Medicare? That lump sum may increase your Medicare Part B and D premiums next year.
So, yes, this is the time to get good advice — not only on filing 2024 taxes, but on making estimated tax payments throughout the year in 2025 if that is necessary.
