What are the tax implications of retirement?

One of the biggest challenges of being retired is dealing with all the paperwork associated. Consider the following:

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Paying estimated income taxes- Unless you worked for yourself, you will probably start the process of making estimated tax payments to the Federal and, if applicable, your state government, for income taxes. Payments are required on April 15, June 15, September 15 and January 15. Generally, you need to ensure that you prepay at least 90% of what you actually will owe in the year you are retired or 100% of the prior year's tax amount.