Tax Checklist for Lakewood Ranch Retirees

This checklist is general information for retirees in Lakewood Ranch, Florida (Manatee and Sarasota counties). It is not tax, legal or investment advice. Tax rules change, and the right move depends on your full situation, so check with a CPA or tax professional before you act.

What taxes do Lakewood Ranch retirees still pay?

Florida does not tax retirement income, so your main income tax is federal, plus property tax and sales tax at home. Florida has no state personal income tax, so pensions, IRA and 401(k) withdrawals, Social Security, interest and dividends are not taxed by the state. The Florida Department of Revenue also confirms there is no Florida estate tax for deaths after 2004.

What still applies to most retirees here:

• Federal income tax on pensions, traditional IRA and 401(k) withdrawals, investment income and part of Social Security.
• Medicare Part B premiums, which rise with income.
• Property tax on your home, reduced by the homestead exemption, plus any CDD assessment.
• Sales tax of 7% in both Manatee and Sarasota counties.
• Your old state’s tax for the year you moved, and on any income still sourced there.

What is on the yearly checklist?

Most retiree tax tasks follow the same calendar every year.

When	Task	Why it matters
By January 15	Fourth-quarter estimated payment for the prior year	Avoids underpayment penalties
By March 1	Homestead and senior exemption applications (first year, or after a change)	Missing it generally waives the exemption for that year
By April 1	First RMD, only if you turned 73 the year before	Delaying means two RMDs in one tax year
By April 15	File the federal return and pay; first estimated payment	An extension moves filing to October 15, not payment
June 15 and September 15	Second and third estimated payments	Keeps you on the quarterly schedule
Fall	Review income for Medicare premium brackets, Roth conversions and charitable giving	Year-end is the last chance to act for the current year
By December 31	Take your RMD for the year (after the first)	A missed RMD can cost a 25% excise tax

How do required minimum distributions work?

You must start taking RMDs from traditional IRAs and most workplace plans for the year you turn 73. The first one can wait until April 1 of the next year, but then you take two in that year, which can push you into a higher bracket. After that, each RMD is due by December 31.

• Roth IRAs have no RMDs while the owner is alive.
• Still working? You can usually delay RMDs from your current employer’s plan until you retire, unless you own 5% or more of the business.
• The amount is your prior December 31 balance divided by an IRS life expectancy factor.
• Missing one can trigger a 25% excise tax, cut to 10% if you correct it within two years.

How is Social Security taxed?

Florida does not tax Social Security, but part of your benefits can be federally taxable once your combined income passes $25,000 (single) or $32,000 (joint). The IRS test adds half of your benefits to your modified adjusted gross income and compares the total with those base amounts.

That means RMDs, pension income and capital gains can make more of your Social Security taxable. You can ask Social Security to withhold federal tax at 7%, 10%, 12% or 22% of each payment, which can replace or reduce estimated payments.

What new deductions apply to seniors?

For tax years 2025 through 2028, each person 65 or older can claim an extra $6,000 federal deduction, whether or not they itemize. A married couple who both qualify can claim $12,000. The deduction phases out for modified adjusted gross income above $75,000 ($150,000 for joint filers). It is in addition to the regular extra standard deduction for people 65 and older. You need a valid Social Security number on the return to claim it.

How does income affect Medicare premiums?

The 2026 standard Medicare Part B premium is $202.90 a month, and it rises for single filers with income above $109,000 or joint filers above $218,000. These income-related adjustments generally use your tax return from two years earlier (2024 returns set 2026 premiums), so a big IRA withdrawal, home sale or Roth conversion can raise premiums two years later. Social Security lets you ask for a lower amount after certain life-changing events, such as stopping work. The 2026 Part B deductible is $283.

Plan large income events with that lag in mind. A CPA can model how a Roth conversion or a home sale affects both your tax bill and future premiums.

Do retirees need to make estimated payments?

If you expect to owe $1,000 or more when you file and withholding does not cover it, the IRS generally expects quarterly estimated payments. You usually avoid a penalty if you pay at least 90% of this year’s tax or 100% of last year’s tax, whichever is smaller (high-income taxpayers face a higher prior-year threshold).

The simplest fix for many retirees is withholding. Ask your IRA custodian or pension plan to withhold federal tax, or set up withholding on Social Security.

How do you prove Florida residency to your old state?

Build a clear record that Lakewood Ranch is your permanent home. That means a Florida driver license, vehicle registrations, voter registration, a homestead exemption and, if you like, a declaration of domicile filed with the county clerk. Keep a log of days spent in each state.

This matters most if you kept a home up north. New York, for example, can treat you as a resident if you maintain a permanent place of abode there for substantially all of the year and spend 184 days or more in the state. Our Florida tax checklist for movers walks through each step.

What property tax breaks can retirees claim?

Start with the homestead exemption, then check whether you qualify for senior or other add-on exemptions. You must own and live in the home on January 1 and apply by March 1. Manatee County also offers a low-income senior exemption of an additional $25,000 off county taxes for owners 65 or older on January 1 who meet an income limit adjusted each year, with income documents due by June 1. Sarasota County has its own senior exemptions. Widows, widowers, people with disabilities and veterans with service-connected disabilities may qualify for more.

Our homestead exemption guide explains the steps in both counties and the November 2026 ballot amendment that would raise the exemption.

Which strategies are worth a conversation with a CPA?

These are the moves where professional help most often pays for itself.

1. Qualified charitable distributions. From age 70 and a half, you can send money directly from an IRA to a qualifying charity tax-free, up to $111,000 per person in 2026 (the limit started at $100,000 and is now indexed for inflation). After 73, it can count toward your RMD.
2. Roth conversions in lower-income years, weighed against Medicare premium brackets.
3. Timing the sale of a former home or investments around a move and the senior deduction phase-out.
4. Updating estate documents for Florida law. Florida has no estate tax, but wills, trusts and powers of attorney drafted elsewhere should be reviewed by a Florida attorney.

For more on when professional help is worth it, read do I need a CPA after moving to Florida, or visit the CPA hub. Still deciding where to live? Our guide to retiring in Lakewood Ranch and our comparison of 55-plus communities in Lakewood Ranch cover the lifestyle side.