Hey Tax guys

[zack59]

I'm looking at the calculator for the new tax bill, can someone tell me if my numbers are correct?

Hypothetical single no income except TIRA withdrawals.
12k standard and 38,700 IRA withdrawal totaling 50,700

Tax rates
In $0 - $9525 bracket, you pay 10%. Cost: $952
From $9525 - $38700, 12%. Cost: $3,501
Total federal tax bill: $4,454

Now if I have 24k in social security income in addition to the 50,700 is 85% of the 12k taxed at the next bracket of 22% increasing the tax due by $2244?

 

[REWahoo]

I'm looking at the calculator for the new tax bill, can someone tell me if my numbers are correct?

I think a lot of tax guys on the forum can tell you if your numbers are correct but can anyone tell you if the "tax guys" posting on this forum are correct?

 

[Big_Hitter]

if i'm licensed to practice in front of the irs does that make me a tax guy?

to answer your question do we have an online calculator anywhere?

 

[zack59]

Tax Plan Calculator by Maxim Lott

 

[kaneohe]

...............................

Now if I have 24k in social security income in addition to the 50,700 is 85% of the 12k taxed at the next bracket of 22% increasing the tax due by $2244?

?? why using 24K and subsequently 12K for the added income

 

[zack59]

Is it not 1/2 SS benefits taxable at 85% or is it the 24k taxed at 85%?

 

[frayne]

Is it not 1/2 SS benefits taxable at 85% or is it the 24k taxed at 85%?

I used to be a tax guy and pretty sure that up to 85% of your SS can be taxable depending on your other income streams.

 

[cathy63]

I'm looking at the calculator for the new tax bill, can someone tell me if my numbers are correct?

Hypothetical single no income except TIRA withdrawals.
12k standard and 38,700 IRA withdrawal totaling 50,700

Tax rates
In $0 - $9525 bracket, you pay 10%. Cost: $952
From $9525 - $38700, 12%. Cost: $3,501
Total federal tax bill: $4,454

Now if I have 24k in social security income in addition to the 50,700 is 85% of the 12k taxed at the next bracket of 22% increasing the tax due by $2244?

If your income is $38,700 from your traditional IRA, all of which is tax deferred; plus $24K in SS, then 85% of your SS is taxable at your ordinary rate.

$38,700
+ .85 x $24,000
- $12,000 standard deduction (assuming you are 65 or under and not blind)
------------
$47,100 taxable income

Tax calc:
.1 x $9525
+ .12 x ($38700-9525)
+ .22 x ($47100-38700)
--------------
$6301.50 tax

I am not entirely sure why you were adding "12k standard" to your IRA withdrawal. If you actually have $12K more in income, then that is taxable at 22% and adds $2640 to your taxes owed.

 

[zack59]

If your income is $38,700 from your traditional IRA, all of which is tax deferred; plus $24K in SS, then 85% of your SS is taxable at your ordinary rate.

$38,700
+ .85 x $24,000
- $12,000 standard deduction (assuming you are 65 or under and not blind)
------------
$47,100 taxable income

Tax calc:
.1 x $9525
+ .12 x ($38700-9525)
+ .22 x ($47100-38700)
--------------
$6301.50 tax

I am not entirely sure why you were adding "12k standard" to your IRA withdrawal. If you actually have $12K more in income, then that is taxable at 22% and adds $2640 to your taxes owed.

Thanks Cathy

And if my IRA withdrawal was $22,000 would it be

$22,000
+ .50 x $24,000
- $12,000 standard deduction (assuming you are 65 or under and not blind)
------------
$22,000 taxable income

Tax calc:
.1 x $9525
+ .12 x ($22,000-9525)

--------------
2449.50 tax

 

[Ready]

Tax Plan Calculator by Maxim Lott

According to this calculator I'm going to pay an additional $225 in taxes under the new tax bill. But I don't understand what it's doing. It just asks for a single number for income, but doesn't distinguish between earned income and capital gains or dividends. Wouldn't that make a big difference? I will have no earned income. I thought if my CG's and Div's are under $38K I won't owe any federal taxes.