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?
Pension and taxes
- Thread starter LinCella
- Start date
heeyy_joe
Thinks s/he gets paid by the post
Turbotax can help you figure it out.
rbmrtn
Thinks s/he gets paid by the post
IRS has a with holding calculator. Your state may have one, many states exempt pensions.
IRS Withholding Calculator
IRS Withholding Calculator
donheff
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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.
heeyy_joe
Thinks s/he gets paid by the post
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.
Last edited:
jclarksnakes
Full time employment: Posting here.
- Joined
- Jun 2, 2006
- Messages
- 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.
TurboTax® TaxCaster - Free Tax Calculator - Free Tax Estimator
This is a VERY useful tool for retirement tax planning.
heeyy_joe
Thinks s/he gets paid by the post
+1. Taxcaster is very useful.
