Trying to figure out a tax problem...or better yet the optimal way to fund RMD.
Let's say a person has the following in terms of income come RMD time this year at 72/RMD date:
$20k Pension (income tax rate)
$30k QBI (income tax rate)
$50k RMD where 30K comes from Qualified Dividends, 20k from selling stock shares...
$50k SS ($33.335 + $16.665)
Total income = 150k
I am trying to check my math on this but I believe we need to make some assumptions:
1. Capital Gains Tax Threshold is $83,350 MFJ for 0% & anything greater is 15% rate
2. Up to 85% of a taxpayer's benefits may be taxable if they are: MFJ with more than $44,000 income.
3. Its currently a bear market and we want to "avoid selling low"
4. the 20k stock shares gets transferred "in-kind"
What is the tax liability for this 72 yr old?
20k pension income taxed at 12% - 20(.12)= 2.4
30k QBI taxed at 12% - 30(.12)= 3.6
30k RMD from Divvies taxed at 0% - 0
20k RMD from stock sales - 30(.12)= 3.6
50k SS - 50(.85)*0.12= 5.1
TOTAL TAX = 2.4+3.6+0+3.6+5.1 == $14,700 federal income tax
Am I missing anything? and am I using the right bracket at 12% err would this really be the 22% bracket (re the TAX TORPEDO)??
83,500( .12) + (120-83.5).22 = 10.02 + 8.03 == $18,500 ??
Let's say a person has the following in terms of income come RMD time this year at 72/RMD date:
$20k Pension (income tax rate)
$30k QBI (income tax rate)
$50k RMD where 30K comes from Qualified Dividends, 20k from selling stock shares...
$50k SS ($33.335 + $16.665)
Total income = 150k
I am trying to check my math on this but I believe we need to make some assumptions:
1. Capital Gains Tax Threshold is $83,350 MFJ for 0% & anything greater is 15% rate
2. Up to 85% of a taxpayer's benefits may be taxable if they are: MFJ with more than $44,000 income.
3. Its currently a bear market and we want to "avoid selling low"
4. the 20k stock shares gets transferred "in-kind"
What is the tax liability for this 72 yr old?
20k pension income taxed at 12% - 20(.12)= 2.4
30k QBI taxed at 12% - 30(.12)= 3.6
30k RMD from Divvies taxed at 0% - 0
20k RMD from stock sales - 30(.12)= 3.6
50k SS - 50(.85)*0.12= 5.1
TOTAL TAX = 2.4+3.6+0+3.6+5.1 == $14,700 federal income tax
Am I missing anything? and am I using the right bracket at 12% err would this really be the 22% bracket (re the TAX TORPEDO)??
83,500( .12) + (120-83.5).22 = 10.02 + 8.03 == $18,500 ??