For retirees, defining “earned income” is key to understanding ’09 tax credit.

Retired? Lucky duck. Did you notice a change in your monthly budget starting this past April? Maybe you had a couple of extra bucks lying around after all your expenses were paid? Jeff Rose’s blog takes a minute to explain the new tax credit on “earned income” and how it relates to retirees. What you may not realize is that although you’ll see more earnings in the coming months, it’s more than likely you’ll be paying it back come tax time. Don’t bang your head against the wall yet. Just talk to your tax advisor or sock away some extra savings to ensure you don’t spend it before tax time. See how it ties in with your current financial situation. Our philosophy: better to know now than be surprised later.

Tags: Retire, Retiree, Taxes