Fermion
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I just finished up our 2015 taxes (we early retired in early 2015) and boy what a tax surprise!
Normally we pay about $60,000 in federal tax but we only worked three months in 2015. We loaded up the 401K during those three months and completely filled it out to 18,500, along with maxing the HSA. Instead of doing a non deductible IRA and back door it into a Roth, we were able to each make $5500 contributions to a deductible IRA.
We paid full premium on a ACA exchange policy for May to December even though we were eligible technically for about $250 a month credit.
Tax software just spit out our refund of $12 grand and change!
I should retire more often.
(yeah I know this means they kept our money but some things were unavoidable like forgoing the ACA premium credit. I was not expecting things like getting a savers credit of $400. A savers credit!)
Normally we pay about $60,000 in federal tax but we only worked three months in 2015. We loaded up the 401K during those three months and completely filled it out to 18,500, along with maxing the HSA. Instead of doing a non deductible IRA and back door it into a Roth, we were able to each make $5500 contributions to a deductible IRA.
We paid full premium on a ACA exchange policy for May to December even though we were eligible technically for about $250 a month credit.
Tax software just spit out our refund of $12 grand and change!
I should retire more often.
(yeah I know this means they kept our money but some things were unavoidable like forgoing the ACA premium credit. I was not expecting things like getting a savers credit of $400. A savers credit!)