HomesteadDreamer
Dryer sheet wannabe
- Joined
- Dec 25, 2013
- Messages
- 24
My wife (46) and I (48) are planning on retiring in 2 years or less. I have done a lot of research and calculations, but I'm not sure if I'm missing something, so I was hoping to get some of you to help double-check my work. Our plan is to live off of my military pension and her VA Disability for the first few years until her military pension (Guard - receives it at 60) kicks in and we eventually start withdrawing from TSP and (hopefully) SS.
Here are our income projections for the first few years of retirement.
Me - retired military with $44K income ($38K in taxable income, after SBP and VA disability is deducted)
Her - VA disability with $24K income (all non-taxable)
With that, we would have an income approximately $68K/yr, but only $38K taxable. We are looking to retire in KY, which does not levy state taxes on military pensions if taxable income is below $41K, so it appears that the only taxes we would be paying would be Federal.
That said, if we file 'married, filing jointly' and take the $24K standard deduction (we probably won't have enough to itemize), we would only be paying federal tax on $14K, or about $1400/yr (~$120/month).
That sounds good to me, as we would be happy only paying that amount each year...but, I'm not sure if I'm missing something important regarding taxes. Note: I'm not including other taxes, such as property/auto taxes, as that is already figured into our budget. I'm just trying to predict what our income tax will be in retirement.
Anyone see anything that I'm overlooking?
Thanks in advance for your help.
Here are our income projections for the first few years of retirement.
Me - retired military with $44K income ($38K in taxable income, after SBP and VA disability is deducted)
Her - VA disability with $24K income (all non-taxable)
With that, we would have an income approximately $68K/yr, but only $38K taxable. We are looking to retire in KY, which does not levy state taxes on military pensions if taxable income is below $41K, so it appears that the only taxes we would be paying would be Federal.
That said, if we file 'married, filing jointly' and take the $24K standard deduction (we probably won't have enough to itemize), we would only be paying federal tax on $14K, or about $1400/yr (~$120/month).
That sounds good to me, as we would be happy only paying that amount each year...but, I'm not sure if I'm missing something important regarding taxes. Note: I'm not including other taxes, such as property/auto taxes, as that is already figured into our budget. I'm just trying to predict what our income tax will be in retirement.
Anyone see anything that I'm overlooking?
Thanks in advance for your help.