If you want to pay less when you retire, moving to one of the states that don’t tax retirement income might be one way to do that. So, if your retirement income includes Social Security benefits, distributions from a 401(k) or IRA, or a pension, you might want to consider one of these states.

Even though these states don't tax "traditional retirement income," you might still have to pay tax on other types of income you earn in retirement, such as from wages, interest, and dividends. (Federal income tax still applies in these states.)

Alaska

Alaska doesn’t tax your Social Security benefits, your pension, your 401(k) or IRA distributions. That’s because Alaska has no state income tax. 

One of the common misconceptions that divorced parents have is that whatever the divorce agreement says will be honored by the IRS.  This is no longer true.  Starting in 1996, the IRS came up with the custodial parent rules and Form 8332 (or its equivalent) to determine who can legally claim a dependent.   

In brief, the custodial parent is the one where the dependents live more than six months out of the year.  The custodial parent has all rights to claim all credits (child tax credit, additional child tax credit, earned income credit, education credits, child care credits, etc).  In fact, the only credit that the custodial parent can give to the non-custodial parent is the child tax credit.  Let me use an example of how this currently plays out:

Did you know that there are several categories of income are not taxable in the eyes of the IRS?

Here is a list of some common types of nontaxable income. Needles to say, it's good to consult a trusted tax professional or financial adviser if you are uncertain about your tax burden and how to minimize it. 

Here are Some Examples

Note: The following are examples of nontaxable income. (This list is not all-inclusive.) In some cases, you may have to report nontaxable income on your federal income tax return even though it isn't subject to tax.

For more information on what the IRS considers taxable, see IRS Publication 525.

The FBI has issued a warning to Americans that they should exercise caution when scanning QR codes with their smartphones because cybercriminals tamper with the codes to steal login and financial information.

A QR code—the square barcode that people can scan with their smartphone cameras—can provide quick and convenient access to a website or to a direct payment to an intended recipient.

Businesses have started using QR codes to provide contactless access to services, for instance, enabling access to restaurant menu items on a smartphone that can then be conveniently ordered.  But the more convenient technology tries to make life, the more ways that scammers can find ways to use it.

One of the most - I think - was the tax rule concerning those whose join the military was that your state of residence for tax purposes was where you signed up for the military.   So, if you joined the military from a state that has state income tax laws, you had to pay state taxes to to that state - even if you currently live in a state that had no tax.

Congress finally fixed it.

The Veterans Auto and Education Improvement Act of 2022 (VAEIA) was signed into law Jan. 5, 2023. The Act expands existing legislation protecting military service members’ and their spouses’ residency. 

Increased small employer plan start-up credit

Eligible small employers may claim a general business credit of up to $5,000 for the cost of establishing a pension plan, such as a SEP or SIMPLE plan, for eligible employees. An eligible employer is one with 100 or fewer employees who received at least $5,000 in compensation the previous year. The credit is allowed for the year the plan is established and each of the two subsequent years.

For plan years starting after Dec. 31, 2022:

The Internal Revenue Service announced the launch of a new page on IRS.gov explaining theEmployer-Provided Childcare Tax Credit, an incentive for businesses to provide child care services to their employees.

“This business tax credit helps employers provide their employees with child-care services and facilities,” said IRS Commissioner Danny Werfel. “We’ve heard that some employers may be overlooking this important credit, so the IRS has created a new one-stop shop for information on IRS.gov that provides an easy place to learn more.”

Taxpayers for whom using the technology required to comply with electronic filing requirements conflicts with their religious beliefs may claim a religious exemption and file paper forms instead. IRS Notice 2024-18 provides updated guidance on claiming the religious exemption for taxpayers filing business returns such as Form 1120, Form 1120-S, or Form 1065.

These filers are not subject to the e-filing waiver procedures applicable to other taxpayers, such as those requesting a hardship waiver. Instead, taxpayers who qualify for the religious exemption should print “Religious Exemption” in bold letters on top of the paper-filed return. They should notfile Form 8508, Application for Waiver from Electronic Filing of Information Returns. Notice 2024-18 obsoletes Notice 2010-13.