NW-Bound
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Jul 3, 2008
- Messages
- 35,712
So, to pay zero Federal tax, taxable income would have to be around $20,000 or so, correct? I would find it difficult to live on that in California.
I have not looked closely, but same as other posters, I don't think I will have problems keeping my taxable income low, while having living expenses several times that amount. As I stopped my part-time work earlier this year, in 2013 I will be living 100% off my after-tax accounts. I expect to be paying very little income tax if any, this year and next. Most of that money has already been taxed!
Quite a bit of dividends are in IRAs and 401ks, which I have no need to tap until the age of 59-1/2. That saves me the trouble of setting up 72t distributions. Even my after-tax cash is in I-bonds, whose interests are not taxed until I withdraw.
I will need to look into doing Roth conversion.