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Despite this complexity, you have significant control over your tax liability, especially before required minimum distributions (RMDs) start. In that light, key tax considerations for retirees in 2025 include:

📌 Health Insurance Premium Tax Credit: Early retirees might qualify for credits if income stays within certain limits, reducing health insurance costs

📌 Zero Capital Gains: Selling winning investments can be tax-free if your taxable income remains below thresholds ($63,350 for singles, $126,700 for couples)

📌 Managing Tax Brackets: Avoiding income spikes can help you stay within lower tax brackets, with strategies like Roth conversions or selling investments.

📌 Social Security Earnings Test: Retirees under full retirement age risk benefit reductions if working part-time while claiming Social Security. Delaying benefits can avoid penalties and maximize payouts.

📌 Medicare Surcharge (IRMAA): Higher-income retirees face surcharges on Medicare premiums. Planning ahead and appealing afterlife changes can help minimize these costs.

📌 Qualified Charitable Distributions (QCDs): If aged 70½+, you can donate directly from IRAs to charities, satisfying RMDs and reducing taxable income without itemizing deductions