ziggy29
Moderator Emeritus
I ran the Federal Tax estimate again (I used eFile.com) and came up with the same ~$11k in federal tax.
It was mentioned earlier that LTCG isn't taxed until $80k if married filing jointly but I've now had two different calculators give me the same federal tax based on the following:
$12k pension
$13k dividends
$90k LTCG
Answer returns as $11k in taxes owed. Not sure if I'm doing something wrong but the estimate sites are fill in the blank so something isn't jiving.
LTCG are only taxed at 0% as long as you keep AGI (not ACA MAGI) below $80,000 for MFJ.
Until you hit almost $500K in income, if LTCG kicks you above $80K in MFJ AGI it is taxed at 15%. That is still not a punitive rate, and it may be well to take it and the tax hit for one year in order to live off of after-tax assets that are not taxed to remain subsidy-eligible for years.
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