My pension will be my monthly income upon retirement and I get to choose how much I have taken out for taxes, Fed and State. How the hell do I do this? W*rking it's been around 28%. I can't believe I would choose the same for an income that will be 30% less? Time for a tax consultant or is there a way to figure this out?
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2006
Linny727. I ran prospective numbers through Turbo Tax to come up with an estimate and added in capital gains, dividends, plus DW's tax and SS (she gets an earned income stipend from her law firm) and deduct all of that from my pension. Since then I just adjust the withholding up or down a bit after I do each year's taxes.
Every man is, or hopes to be, an Idler. -- Samuel Johnson
The annual TurboTax? I have that, or the website? Thanks
Just use the software to run a "phantom" return. Plug all your numbers in a see what your tax bill would be. Divide the pension amount into your tax bill (gives you a decimal) to derive the estimated percentage of withholding to get your tax bill to zero.
"A man is a success if he gets up in the morning and goes to bed at night and in between does what he wants to do" --Bob Dylan.
This community was started in 2002 as an alternative to a then fee only Motley Fool. The focus of the discussions is on topics related to early retirement and financial independence. The community is moderated to ensure a pleasant experience for our members.