Tax day is April 18th this year, and it will be an unpleasant day for millions of American working households. But cheer up: your tax situation likely will lighten up a bit when you retire.
The Internal Revenue Service takes it easy when it comes to taxation of Social Security, and many retirees drop into lower tax brackets that help soften the tax bite taken from pensions, IRAs dividends and capital gains. Many states exempt Social Security from taxation, and a handful exempt all retirement income.
Taxable income does tend to fall in retirement, when wage income stops. Households headed . . .
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