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The Top Ten States for Military Retirees- Part One

#1 pick for the best tax-free military retirement state goes to the sunshine state of Florida!

Are you thinking about where you want to retire? Maybe you are wondering what state will leave you paying the least amount in taxes when it comes time to file with RapidTax.

Fortunately, there’s a list of states that don’t tax US military retirement pay. Among these military tax exempt states, some are more appealing than others (for a variety of reasons). Below, you’ll find a list of ten states we find most attractive for military retirees to settle in;

The Top Ten states for military retirees, in order from one to five:

#1-Florida : Florida has no state income tax, no tax on benefits, and no tax on retirement income along with no inheritance or estate taxes. Specific tax breaks for seniors include an extra homestead exemption that can be up to $50,000, offered to those who meet certain income limits. Not to mention, Florida offers a variety of  beaches and theme park attractions, meaning the grandchildren will love visiting.

#2-Texas: Following Florida, in close second place, Texas stands as one of the top picks for military retirees. With a tax-free retirement for veterans, the Lone Star State also has no state income tax, does not tax social security benefits, or any retirement income. Tax breaks for seniors in Texas also include exemption from school taxes for homeowners.

Both Florida and Texas not only have tax-free retirement for military retirees, but also both have a variety of Veteran Administration (VA) Medical Facilities. Deciding between the two warm states? The main difference; Florida has a 6% sales tax rate while Texas has a 6.25% sales tax.

Continue reading “The Top Ten States for Military Retirees- Part One”

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Do I Need to File a 2014 Tax Return?

Are you unsure if you need to file a 2014 return?

Tax season can be a frustrating time of year. Why file a tax return if you’re not required to? Although most are required to file a tax return, there are a select few who fall into the list of those who do not need to file a 2014 tax return.

Once you learn if you need to file a tax return, RapidTax is here to help you through the process!

Filing federal taxes depends on:

  • Age
  • Filing Status
  • Income
  • Dependency status

Continue reading “Do I Need to File a 2014 Tax Return?”

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Can I Claim Head of Household on My Taxes?

Head of Household provides several tax benefits, but you must meet several requirements in order to claim it

Of the five filing statuses you can choose when you file your tax return – Single, Married Filing Jointly, Married Filing Separately, Head of Household, and Qualifying Widow(er) – Head of Household is one of the less frequently claimed. But for those who qualify it can provide ample benefits, such as lower tax rates and a higher standard deduction.

Who qualifies as Head of Household?

In order to qualify as a Head of Household you must meet the following requirements:

  1. You were unmarried or considered unmarried on the last day of the year.
  2. You paid more than half the cost of keeping up a home for the year.
  3. A qualifying person lived with you in the house for more than half the year (except for temporary absences, such as school). However if the qualifying person is your dependent parent, they do not need to have lived with you.

Who does the IRS consider unmarried?

The IRS considers you unmarried for the whole tax year if you were unmarried on the last day of the year, or legally separated from your spouse under a divorce or separate maintenance agreement. That means you could have been married all year, but as long as you got divorced by December 31st the IRS considers you unmarried. Continue reading “Can I Claim Head of Household on My Taxes?”