Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Pension and taxes
Old 04-16-2013, 08:30 PM   #1
Recycles dryer sheets
 
Join Date: Feb 2013
Posts: 377
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?
LinCella is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

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!

Old 04-16-2013, 08:34 PM   #2
Thinks s/he gets paid by the post
heeyy_joe's Avatar
 
Join Date: Nov 2012
Location: Madeira Beach Fl
Posts: 1,403
Turbotax can help you figure it 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.
heeyy_joe is offline   Reply With Quote
Old 04-16-2013, 08:37 PM   #3
Recycles dryer sheets
 
Join Date: Feb 2013
Posts: 377
The annual TurboTax? I have that, or the website? Thanks
LinCella is offline   Reply With Quote
Old 04-16-2013, 09:15 PM   #4
Thinks s/he gets paid by the post
 
Join Date: Jul 2012
Location: Mississippi
Posts: 1,894
IRS has a with holding calculator. Your state may have one, many states exempt pensions.

IRS Withholding Calculator
rbmrtn is offline   Reply With Quote
Old 04-16-2013, 09:19 PM   #5
Recycles dryer sheets
 
Join Date: Feb 2013
Posts: 377
Thanks!
LinCella is offline   Reply With Quote
Old 04-17-2013, 06:02 AM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
donheff's Avatar
 
Join Date: Feb 2006
Location: Washington, DC
Posts: 11,317
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.
__________________
Idleness is fatal only to the mediocre -- Albert Camus
donheff is offline   Reply With Quote
Old 04-17-2013, 10:45 AM   #7
Thinks s/he gets paid by the post
heeyy_joe's Avatar
 
Join Date: Nov 2012
Location: Madeira Beach Fl
Posts: 1,403
Quote:
Originally Posted by linny727 View Post
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.
heeyy_joe is offline   Reply With Quote
Old 04-17-2013, 09:28 PM   #8
Full time employment: Posting here.
 
Join Date: Jun 2006
Posts: 927
This is a link to the Turbo Tax Tax Forecaster.
TurboTax® TaxCaster - Free Tax Calculator - Free Tax Estimator
This is a VERY useful tool for retirement tax planning.
__________________
CW4, USA-(ret)
RN, BSN-(ret)
jclarksnakes is offline   Reply With Quote
Old 04-18-2013, 08:59 AM   #9
Thinks s/he gets paid by the post
heeyy_joe's Avatar
 
Join Date: Nov 2012
Location: Madeira Beach Fl
Posts: 1,403
Quote:
Originally Posted by jclarksnakes View Post
This is a link to the Turbo Tax Tax Forecaster.
TurboTax® TaxCaster - Free Tax Calculator - Free Tax Estimator
This is a VERY useful tool for retirement tax planning.
+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.
heeyy_joe is offline   Reply With Quote
Old 04-18-2013, 09:27 AM   #10
Recycles dryer sheets
arky's Avatar
 
Join Date: Jan 2012
Location: Colorado
Posts: 254
Quote:
Originally Posted by heeyy_joe View Post
+1
good call out.
+1. Taxcaster is very useful.
__________________
Don't you know that dynamite always blows down ? --- Moe to Curly
arky is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


» Quick Links

 
All times are GMT -6. The time now is 03:29 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.