Page 10 - Jupiter Spotlight - May '22

Page 10, Jupiter Spotlight

Financial Focus It’s The Law!

Did You Know That, In the person who died (decedent) is no longer the taxpayer –
Don’t Be Surprised By Florida… the estate is – and, therefore, the decedent’s Social Security
Number is no longer a valid identifier.
Social Security Taxes In order to form a corporation, Articles of Incorporation
By Adam S. Gumson, Esq. must be filed in the office of the Department of State and at
By Sally Sima Stahl Remote online least one person must be the incorporator. Corporations may
When you reach the notarizations can be done, be organized for any lawful purpose.
appropriate age, it’s but they aren’t easy. Florida In a divorce action, there is no community property. Florida
easy to apply for Social Statute § 117.201 to 117.305 courts follow the doctrine of equitable distribution when
Security retirement went into effect on Jan. 1, dividing marital assets, which means that the distribution of
benefits – just go to Social 2020. These provisions assets is supposed to be “fair,” albeit not necessarily equal.
Security’s website, fill out authorize Florida notaries With both distribution methods, each spouse receives
the online form and you’re to perform online remote some share of marital property. The difference between
essentially done. But many notarizations after they the two methods is how the court determines each spouse’s
people overlook the next complete an application and share of marital property.
step – completing Form training course. An online Jupiter Law Center is a private neighborhood law firm
W-4V, which asks you notary may notarize an electronic signature. There is a lot of located in the RiverPlace Professional Center, 1003 W.
how much federal income tax you want withheld from fine print though, so before setting up a remote will signing, Indiantown Road, Suite 210, Jupiter, Fla., (561) 744-4600,
your benefits. And if you skip this step, you could face an understand the details. jupiterlawcenter.com. The firm provides peace of mind by
unpleasant surprise when it’s tax-filing time, because Social There are two types of Florida homestead exemptions: solving problems with integrity and compassion in the areas
Security benefits can indeed add to your taxable income. 1) Homestead exemption for real property tax purposes of estate planning (wills and trusts, powers of attorney, health
Here are the details: which caps the owner’s tax liability; and 2) Homestead care surrogates, living wills, probate estates, succession
• If you’re a single filer … If your “combined” income is exemption for asset protection purposes which prevents planning, contracts and purchase/sale agreements), family
between $25,000 and $34,000, you may have to pay income general creditors (with a few exceptions) from forcing the law (divorce, paternity, child support and time sharing,
tax on up to 50 percent of your Social Security benefits. sale of your principal residence to pay outstanding debt. alimony, property distribution, modifications, collaborative
(“Combined” income includes your adjusted gross income, An estate’s executor is referred to as a personal law, pre/post nuptial agreements) and real estate (community
non-taxable interest, and one-half of your annual Social representative (PR). Often, the PR applies for an Employer association law, residential and commercial transactions,
Security benefits.) If your combined income is more than Identification Number (EIN) for tax filing purposes because deeds, closings).
$34,000, up to 85 percent of your benefits may be taxable.
• If you’re married and file jointly … If you and your
spouse have a combined income between $32,000 and
$44,000, you may be taxed on up to 50 percent of your “Service is our number one priority”
benefits. If your combined income is more than $44,000,
up to 85 percent of your benefits may be taxable. 561-743-0070
These numbers might seem high, but they don’t mean
you’ll lose 50 percent, or 85 percent, of your benefits – they www.palmspoolservices.com
are just the percentages of benefits you may be taxed on,
at your personal income tax rate.
To help avoid a big tax bill or an underpayment
penalty, you can file Form W-4V with the Social Security
Administration and request to have 7, 10, 12 or 22 percent
of your monthly benefit withheld. Your tax advisor can help
you choose the withholding percentage that’s appropriate
for your situation.
The amount of taxes you may need to pay will also
depend on when you start taking Social Security. The earlier
you take benefits, the smaller your monthly checks, and the
smaller the taxes. But taxes should not be a key issue in
deciding when you need to begin collecting your payments.
Rather, you should consider other factors, such as your
anticipated life expectancy, your employment situation, Expires 5/31/22.
your spending needs and the benefits for your spouse.
Here’s something else to keep in mind: Because State Licensed & Insured
Social Security taxes are based on your overall income, Serving Palm Beach County CPC # 1457468 • LPG#30099
as described above, the amount of money you withdraw
during retirement, and where that money comes from, can
also affect your tax situation. For example, withdrawals
from a traditional IRA are taxable and will increase your
adjusted gross income, but withdrawals from a Roth IRA
will be tax-free, provided you’ve had your account at least
five years and you’re over 59½, so this money won’t enter
into your taxable income calculations and it won’t increase
the tax you owe on your Social Security benefits. Similarly,
withdrawals from health savings accounts (HSAs) used for
qualified health expenses also won’t count toward your
taxable income.
By knowing exactly what to expect from Social
Security, including the tax effects, you can more effectively
incorporate your benefits into your overall retirement
income planning – and the better your plans, the more
you’ll be able to enjoy your life as a retiree.
This article was written by Edward Jones for use by
your local Edward Jones Financial Advisor, Edward Jones,
Member SIPC.
Edward Jones is a licensed insurance producer in
all states and Washington, D.C., through Edward D.
Jones & Co., L.P., and in California, New Mexico and
Massachusetts through Edward Jones Insurance Agency
of California, L.L.C.; Edward Jones Insurance Agency of
New Mexico, L.L.C.; and Edward Jones Insurance Agency
of Massachusetts, L.L.C.
Edward Jones, its employees and financial advisors
cannot provide tax advice. You should consult your
qualified tax advisor regarding your situation.
Contact us at (561) 748-7600, Sally Sima Stahl, AAMS,
1851 W. Indiantown Road, Ste. 106, Jupiter, FL 33458.