Josh Scandlen Podcast

Soon to be available on Amazon! --- Support this podcast: https://anchor.fm/josh-scandlen-podcast/support

Soon to be available on Amazon! --- Support this podcast: https://anchor.fm/josh-scandlen-podcast/support

Soon to be available on Amazon! --- Support this podcast: https://anchor.fm/josh-scandlen-podcast/support

New Book Will Be Available Shortly on Amazon! --- Support this podcast: https://anchor.fm/josh-scandlen-podcast/support

It's going be AWFUL hard to beat the state of Wyoming when it comes to taxes for retirees. No state income tax.  LOOOOOWWWWW property tax. And LOOWWWWW Sales tax too.  Also a freedom loving state.   Really not much more to say on this. Almost perfect from a tax perspective.  Now, from my understanding it's downright windy in this great state. But if you can handle the wind and some cold, Wyoming might just be your place.  --- Support this podcast: https://anchor.fm/josh-scandlen-podcast/support

UGH! Wisconsin is NOT GOOD for retirees.   Income tax for retirees ranks the 4th highest in the country, first of all. The Tax Foundation puts the state at 11% for its total tax burden.  Yikes! They have some exemptions but your income needs to be VERY low to qualify.  At least Social Security is not taxed though.  That's a win indeed. But once you break $15k in taxable income as a Married Couple you're in the high 5% bracket.  Sales tax is very low. So that's a win. It's offset by a HUGE property tax rate though of 1.77%.  Given that the average house in Wisconsin in on the high end that high property tax rate costs a lot of money.  Interesting is that Wisconsin taxes capital gains at its ordinary income rates.  So, that's just another tax on top of the Feds capital gains rate.  --- Support this podcast: https://anchor.fm/josh-scandlen-podcast/support

West Virginia Taxes retirees on income to the same extent as the Federal Government does.  But, and this is big, in West Virginia taxpayers over 65 can exclude $8,000 of retirement income from their taxable income.  Thus a married couple filing jointly over 6 has $26,600 in standard deductions from the Feds PLUS another $16k from the state.  That's good.  In fact, if you have $25,000 of Social Security income and $25,000 of IRA distributions you will pay all of $250 or so in state tax.   Sales tax is moderately low as well.  Even better is that the state does not tax prescription drugs and groceries.  Lastly, are the property taxes in West Virginia.  Property tax in West Virginia is among the lowest in the nation not only from a percentage but given the lower home values too.  Once again, I disagree with the Kiplinger's assessment. West Virginia is actually quite favorable for taxes in retirement.  --- Support this podcast: https://anchor.fm/josh-scandl

A few years ago, Bill Gates Sr. and others put a ballot initiative for voters to approve a state income tax.  It was voted down, by a rather large percentage, and so Washington remains one of the 7 US states with no income tax.  They make it up with one of the highest sales taxes in the union though, clocking in at over 9%.  But groceries and prescription drugs are exempt.  Which is a very good thing.  Property taxes are right in the middle for overall burden.  So all in all, Washington is definitely on the tax friendly side.  But be advised Washington does have a pretty significant estate tax.   I'll do other videos on that. So be on the lookout.  --- Support this podcast: https://anchor.fm/josh-scandlen-podcast/support

Wow, Virginia is VERY favorable to its retirees, just don't own an expensive car as they charge nearly 5% a year on assessed value for property tax(depending on the county you live). But lots of great income exemptions on retirement income.  Qualifying couples can exclude up to $24,000 of retirement income, so long as their total AGI doesn't exceed $75k. Now remember the difference between taxable income and gross income. AGI of $75k means you can't have taxable income more than $48,400 if you're married filing jointly and over the age of 65.  Now, with that said, even if you break that $75k AGI threshold, you still can get an exemption but you will lose the entirety once you hit $87k. Social Security is tax exempt as well. So, you can have a lot of income essentially tax free.  In fact, I ran a calculation of $50k in Social Security income and $50k in IRA distributions.  Total tax for that $100k gross income?  $770. That's it.  Sales tax is quite favorable too. Virginia fa

Vermont ranks low in terms of tax friendliness for retirees by Kiplingers.  In fact, it ranks among the 10 worst.  But, once again, I don't get it.   Yes, Social Security is taxed, but only to the extent its taxed at the Federal level.  If you've been following my Youtube channel at all you'd know that Social Security is favorably taxed by the Feds.  So, while Vermont includes some Social Security in its tax calculation it's not nearly as bad as Kiplingers would make you think.  In fact, I ran a calculation for a Vermont retired couple who had $50k in Social Security and $50k in IRA distributions.  This couple paid all of $2k to the state in tax.   That's not too bad, actually. On top of that Vermont has a moderately low sales tax, coming in at the 36th highest in the nation.  Finally, Vermont does have an extraordinarily high property tax coming in at the 5th highest in the nation from a percentage basis and the actual dollar amount homeowners pay. 

Look out!  Utah is not very favorable at all to retirees, from an income tax perspective.  In fact, Kiplingers ranks it in the bottom quintile for least favorable taxed states for retirees. First off, ALL of Social Security is included in taxable income.  Yes, there is a retirement tax credit of $900 but it begins to get phased out if your AGI is over $32k for married couples.  (Remember AGI is BEFORE you take standard deductions so AGI of $32k is not much income at all.) It goes without saying that if Social Security is fully taxed than all other forms of income will be fully taxed as well. Property taxes are low, at .65%. So that's good.  Not much of a homestead exemption though. You can't have more than $32k of income to qualify.  Whether this is gross or taxable income I do not know however.   Lastly,  sales tax is moderately low, coming in at 29 for all 50 states. Food is taxed in Utah too.  A couple things to keep in mind, UTAH hammers you on income tax.

Texas is such a great state.  Southern, Mexican, Cajun, German culture all thrown into one place. Plus the diversity in landscape.   Arid in South Texas. Green rolling hills in the east. Deserts, beaches, mountains.  Can it get any better? Absolutely fantastic. Just to set the record straight, there "ain't no saguaros in texas" https://www.youtube.com/watch?v=mg5VwtODOJQ.  You need to go to AZ to see those.  But taxes in Texas are not nearly as favorable as one would think.  Yes, no income tax.  That's awesome.  But property and sales taxes are high.   I remember when we lived in South Texas getting hammered by property tax. We had come from Virginia where property taxes were low.  All of sudden having these huge property taxes was a shock to the system for sure.  Texas definitely offsets it with its NO income tax. But then you throw a high sales tax in the mix and you realize Texas is not nearly the panacea many make it out to be from a tax pe

Tennessee is one of the few states with no income tax.  So, right there alone the good folks in Tennessee are going to be taxed very favorably when it comes to retirement. However, sales in Tennessee is the second highest in the nation, clocking in at 9.46% on average when you factor in local sales tax.  But, a high sales tax is the only sore spot for retirees in Tennessee because property taxes are also among the lowest in the country at .75%.  Factor in Tennessee's lower median home value with the low property tax rate and you have a winning scenario for retired home owners.  Overall, Tennessee comes in very favorably for retirees.  --- Support this podcast: https://anchor.fm/josh-scandlen-podcast/support

South Dakota has no income tax.  Thus ANY income is not taxed.  South Dakota also has a moderately low sales tax too, clocking in at around 6.40%.  Property taxes are on the high end, around 1.21%.  Not extraordinarily high but in the top 20 nationwide.   However,  South Dakota median property isn't overly expensive so the actual dollars residents pay in property tax are in the bottom half of the country.  All in all, no income tax, low sales tax, middling property tax, South Dakota is very favorable for retirees.  --- Support this podcast: https://anchor.fm/josh-scandlen-podcast/support

South Carolina is quite favorable to retirees.   Property tax rate is among the lowest in the nation.   But sales tax is relatively high.   However, income tax is VERY favorable for retirees.  A $30k exemption on retirement income for married couples.  Plus Social Security is not taxed.  So, a married couple with $100k will pay little to NO income tax in South Carolina.  Low income tax, low property tax and a moderately high sales tax, makes South Carolina VERY favorable for retirees.  --- Support this podcast: https://anchor.fm/josh-scandlen-podcast/support

Had some pushback to the video I did yesterday on taking Social Security at 70.  Mostly it revolved about people's misunderstanding of life expectancy. Folks, if you get yoru life expectancy wrong you could be making a HUGE mistake when it comes to filing for Social Security.   And that mistake could cost you hundreds of thousands! https://www.pensjonsforum.net/images/nyheter/Mortality_assumptions_and_longevity_risk.pdf https://personal.vanguard.com/us/insights/retirement/plan-for-a-long-retirement-tool --- Support this podcast: https://anchor.fm/josh-scandlen-podcast/support

Pennsylvania is very good to its retirees in terms of the taxes they pay.  In fact, ALL retirement income is excluded from taxation!   So, just say you have $40k in Social Security and $60k in IRA, pension and 401k distributions.  You will pay 0 in tax.  That is a big, fat Goose Egg, my friends.  Now,  you may think PA has a high sales tax.  And you'd be wrong.  The state plus local sales tax rate puts PA in the bottom third of all the US for sales tax. Lastly, the property tax rate is pretty high at around 1.50%.   There is not much of a homestead exemption either.  But the median property value in Pennsylvania is not extraordinarily high either.  So, while you pay a high percentage, relative to the rest of the US, the total dollar you pay is closer to the middle of the average US state  From an income tax perspective alone, PA is very favorable for retirees. Moderately low sales tax add to the allure.  The property tax is a bit high

Whoa!  Rhode Island has really done a good job at reducing the burden on their retirees.  You may not even realize this because some of the primary websites that analyze state taxes on retirees miss the boat (I am looking at YOU Kiplinger's and Smart Asset!!!) I ran a simulation for a retired couple in Rhode Island with $50k in Social Security income and $50k in 401k or pension income... they'd pay all of $2k in taxes.  That's not too bad, my friends.  Why so low? Because Rhode Island has a new benefit that allows retirees with income under to exempt $15k per person from qualified plan distributions.   BE ADVISED IRAs ARE NOT INCLUDED!!! And if income is below $100k Rhode Island doesn't tax Social Security either.  This is all good.   Sales tax is in the middle of the pack when TOTAL sales tax are included, state and locality.  Property taxes are high with little exemptions, clocking in at over 1.50%. But give credit to the new Democratic governor for getting th

Medicare For All will save us all!!!  BWHAHAHAHA...  Come on, folks. Original Medicare as it is today leaves HUGE gaps. and I mean HUGE. What you may be asking? Long Term Care Copays Coinsurance Vision Hearing Teeth Prescription Drugs Overseas Travel But hey, Medicare is in GREAT shape financially.  So to add hundreds more millions of people to the rolls, illegals or not, won't matter. Oh wait...That's not correct.  Medicare is in far worse shape than Social Security  hmmmm.... https://www.kiplinger.com/slideshow/retirement/T039-S001-7-things-medicare-doesn-t-cover/index.html --- Support this podcast: https://anchor.fm/josh-scandlen-podcast/support

Read the blog post here:  https://heritagewealthplanning.com/the-434886-social-security-mistake/ https://www.kiplinger.com/article/retirement/T051-C000-S004-delaying-social-security-boosts-the-value-of-colas.html --- Support this podcast: https://anchor.fm/josh-scandlen-podcast/support