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04-16-2013, 08:30 PM
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#1
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Recycles dryer sheets
Join Date: Feb 2013
Posts: 377
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Pension and taxes
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?
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04-16-2013, 08:34 PM
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#2
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Thinks s/he gets paid by the post
Join Date: Nov 2012
Location: Madeira Beach Fl
Posts: 1,403
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Turbotax can help you figure it out.
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"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.
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04-16-2013, 08:37 PM
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#3
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Recycles dryer sheets
Join Date: Feb 2013
Posts: 377
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The annual TurboTax? I have that, or the website? Thanks
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04-16-2013, 09:15 PM
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#4
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Thinks s/he gets paid by the post
Join Date: Jul 2012
Location: Mississippi
Posts: 1,894
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IRS has a with holding calculator. Your state may have one, many states exempt pensions.
IRS Withholding Calculator
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04-16-2013, 09:19 PM
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#5
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Recycles dryer sheets
Join Date: Feb 2013
Posts: 377
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Thanks!
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04-17-2013, 06:02 AM
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#6
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2006
Location: Washington, DC
Posts: 11,317
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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.
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Idleness is fatal only to the mediocre -- Albert Camus
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04-17-2013, 10:45 AM
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#7
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Thinks s/he gets paid by the post
Join Date: Nov 2012
Location: Madeira Beach Fl
Posts: 1,403
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Quote:
Originally Posted by linny727
The annual TurboTax? I have that, or the website? Thanks
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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.
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04-18-2013, 08:59 AM
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#9
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Thinks s/he gets paid by the post
Join Date: Nov 2012
Location: Madeira Beach Fl
Posts: 1,403
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Quote:
Originally Posted by jclarksnakes
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+1
good call out.
__________________
_______________________________________________
"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.
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04-18-2013, 09:27 AM
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#10
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Recycles dryer sheets
Join Date: Jan 2012
Location: Colorado
Posts: 254
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Quote:
Originally Posted by heeyy_joe
+1
good call out.
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+1. Taxcaster is very useful.
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Don't you know that dynamite always blows down ? --- Moe to Curly
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