I'm trying to get a handle on tax liability after retirement. Using both the Intuit and H&R Block tax estimators I come up with what looks like ridiculously low looking taxes. How accurate are they? Approximately 79k income of which 43,250 is SS produces a total Fed and State tax of around 5400 to 6000 (of course after deductions, mort., prop. tax, etc).
Also the DW has the State pension where I can get my health ins.(497 @mo.), will they take that out of her check before taxes? If so, that reduces the tax burden even lower (about 1700). Am I missing something?
I'm still trying to find the flaws in our plan to retire 7/15. Given the above, after taxes, covers our existing budget nearly 100% including the additional HI expense, it looks like we are currently just working to provide tax revenue.