Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Hey Tax guys
Old 12-20-2017, 03:59 PM   #1
Dryer sheet wannabe
 
Join Date: Jun 2017
Posts: 22
Hey Tax guys

I'm looking at the calculator for the new tax bill, can someone tell me if my numbers are correct?

Hypothetical single no income except TIRA withdrawals.
12k standard and 38,700 IRA withdrawal totaling 50,700

Tax rates
In $0 - $9525 bracket, you pay 10%. Cost: $952
From $9525 - $38700, 12%. Cost: $3,501
Total federal tax bill: $4,454

Now if I have 24k in social security income in addition to the 50,700 is 85% of the 12k taxed at the next bracket of 22% increasing the tax due by $2244?
zack59 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 12-20-2017, 04:06 PM   #2
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: No Country for Old Men
Posts: 47,643
Quote:
Originally Posted by zack59 View Post
I'm looking at the calculator for the new tax bill, can someone tell me if my numbers are correct?
I think a lot of tax guys on the forum can tell you if your numbers are correct but can anyone tell you if the "tax guys" posting on this forum are correct?
__________________
Numbers is hard

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 12-20-2017, 04:08 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Big_Hitter's Avatar
 
Join Date: May 2013
Location: Les Bois
Posts: 5,608
if i'm licensed to practice in front of the irs does that make me a tax guy?

to answer your question do we have an online calculator anywhere?
__________________
You can't be a retirement plan actuary without a retirement plan, otherwise you lose all credibility...
Big_Hitter is offline   Reply With Quote
Old 12-20-2017, 04:15 PM   #4
Dryer sheet wannabe
 
Join Date: Jun 2017
Posts: 22
Tax Plan Calculator by Maxim Lott
zack59 is offline   Reply With Quote
Old 12-20-2017, 05:08 PM   #5
Thinks s/he gets paid by the post
 
Join Date: Jan 2006
Posts: 4,172
Quote:
Originally Posted by zack59 View Post
...............................

Now if I have 24k in social security income in addition to the 50,700 is 85% of the 12k taxed at the next bracket of 22% increasing the tax due by $2244?
?? why using 24K and subsequently 12K for the added income
kaneohe is offline   Reply With Quote
Old 12-20-2017, 05:12 PM   #6
Dryer sheet wannabe
 
Join Date: Jun 2017
Posts: 22
Is it not 1/2 SS benefits taxable at 85% or is it the 24k taxed at 85%?
zack59 is offline   Reply With Quote
Old 12-20-2017, 05:51 PM   #7
Thinks s/he gets paid by the post
frayne's Avatar
 
Join Date: Oct 2002
Location: Chattanooga
Posts: 3,212
Quote:
Originally Posted by zack59 View Post
Is it not 1/2 SS benefits taxable at 85% or is it the 24k taxed at 85%?
I used to be a tax guy and pretty sure that up to 85% of your SS can be taxable depending on your other income streams.
__________________
"The only function of economic forecasting is to make astrology look respectable. Ezra Solomon
frayne is offline   Reply With Quote
Old 12-20-2017, 06:07 PM   #8
Thinks s/he gets paid by the post
 
Join Date: Mar 2013
Location: Coronado
Posts: 2,264
Quote:
Originally Posted by zack59 View Post
I'm looking at the calculator for the new tax bill, can someone tell me if my numbers are correct?

Hypothetical single no income except TIRA withdrawals.
12k standard and 38,700 IRA withdrawal totaling 50,700

Tax rates
In $0 - $9525 bracket, you pay 10%. Cost: $952
From $9525 - $38700, 12%. Cost: $3,501
Total federal tax bill: $4,454

Now if I have 24k in social security income in addition to the 50,700 is 85% of the 12k taxed at the next bracket of 22% increasing the tax due by $2244?
If your income is $38,700 from your traditional IRA, all of which is tax deferred; plus $24K in SS, then 85% of your SS is taxable at your ordinary rate.

$38,700
+ .85 x $24,000
- $12,000 standard deduction (assuming you are 65 or under and not blind)
------------
$47,100 taxable income

Tax calc:
.1 x $9525
+ .12 x ($38700-9525)
+ .22 x ($47100-38700)
--------------
$6301.50 tax

I am not entirely sure why you were adding "12k standard" to your IRA withdrawal. If you actually have $12K more in income, then that is taxable at 22% and adds $2640 to your taxes owed.
cathy63 is offline   Reply With Quote
Old 12-20-2017, 06:59 PM   #9
Dryer sheet wannabe
 
Join Date: Jun 2017
Posts: 22
Quote:
Originally Posted by cathy63 View Post
If your income is $38,700 from your traditional IRA, all of which is tax deferred; plus $24K in SS, then 85% of your SS is taxable at your ordinary rate.

$38,700
+ .85 x $24,000
- $12,000 standard deduction (assuming you are 65 or under and not blind)
------------
$47,100 taxable income

Tax calc:
.1 x $9525
+ .12 x ($38700-9525)
+ .22 x ($47100-38700)
--------------
$6301.50 tax

I am not entirely sure why you were adding "12k standard" to your IRA withdrawal. If you actually have $12K more in income, then that is taxable at 22% and adds $2640 to your taxes owed.

Thanks Cathy

And if my IRA withdrawal was $22,000 would it be

$22,000
+ .50 x $24,000
- $12,000 standard deduction (assuming you are 65 or under and not blind)
------------
$22,000 taxable income

Tax calc:
.1 x $9525
+ .12 x ($22,000-9525)

--------------
2449.50 tax
zack59 is offline   Reply With Quote
Old 12-20-2017, 07:04 PM   #10
Thinks s/he gets paid by the post
Ready's Avatar
 
Join Date: Mar 2013
Location: Southern California
Posts: 3,362
Quote:
Originally Posted by zack59 View Post
According to this calculator I'm going to pay an additional $225 in taxes under the new tax bill. But I don't understand what it's doing. It just asks for a single number for income, but doesn't distinguish between earned income and capital gains or dividends. Wouldn't that make a big difference? I will have no earned income. I thought if my CG's and Div's are under $38K I won't owe any federal taxes.
Ready is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
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


Similar Threads
Thread Thread Starter Forum Replies Last Post
Hello, nice to meet you guys Wheel Hi, I am... 13 09-30-2005 12:45 PM
You guys have to read this...very interesting wildcat FIRE and Money 18 05-07-2005 08:23 AM
ER Good guys win one! mickeyd Other topics 0 06-08-2004 12:25 PM
You guys make me laugh... Bayfield40 Other topics 2 03-26-2004 06:34 AM
Question For Financial Whiz Guys..... Cut-Throat FIRE and Money 16 01-18-2004 04:00 AM

» Quick Links

 
All times are GMT -6. The time now is 01:53 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2021, vBulletin Solutions, Inc.