I am retiring this year, all our income will be from investments, so I get to decide how much to withdraw & from which accounts (taxable vs Tax Deferred)
As I am getting started on Medicare this year, our income will decide our Taxes & also my Medicare Premiums 2 yrs down.
In 2020, we shot up unintentionally into 24% bracket (MFJ) & missed several income irmaa levels for Medicare Premiums & will be paying a surcharge of 3 rd Tier in 2022.
Although I was planning to the top of 21% mfj, in the last month of the year the income from dividends, interest, some cap gains with balancing the portfolio etc.. started trickling in & we overshot the target & paid a hefty tax bill.
I am curious & want to learn from other members, as to how to plan the income of this year. Is there a software I can use to do this proactively, because by the time I do my taxes by TurboTax next year, I cannot change the past year's income.
Is it just by eye balling or by trial & error ?
I will appreciate any feedback regarding planning this years income, thank you in advance.
As I am getting started on Medicare this year, our income will decide our Taxes & also my Medicare Premiums 2 yrs down.
In 2020, we shot up unintentionally into 24% bracket (MFJ) & missed several income irmaa levels for Medicare Premiums & will be paying a surcharge of 3 rd Tier in 2022.
Although I was planning to the top of 21% mfj, in the last month of the year the income from dividends, interest, some cap gains with balancing the portfolio etc.. started trickling in & we overshot the target & paid a hefty tax bill.
I am curious & want to learn from other members, as to how to plan the income of this year. Is there a software I can use to do this proactively, because by the time I do my taxes by TurboTax next year, I cannot change the past year's income.
Is it just by eye balling or by trial & error ?
I will appreciate any feedback regarding planning this years income, thank you in advance.