Wife is retiring at age 62 in June 2012. I am considering retirement in summer of 2012 at age 62.
My question is IRS 15% tax bracket based on adjusted gross income, line 37 on 1040 or line 43 taxable income?
Projected retirement income for wife and I will be $72,000 annually. This would include social security, $33,600, pension income $36,150 and $2500 ordinary dividends in taxable Schwab account.
We have $350,000 in tax deferred accounts that we are not planning to draw from until age 70.
Wife and I will be paying $18,000 per year medical insurance premiums until January 2015 when we will both be 65. Can I deduct the $18,000 medical insurance premiums at 100% or will have to use 7.5% deduction on line 3 in itemized deductions?
We also have $3,000 deduction from rental real estate.
2011 total itemized deductions on form 1040 was $17,200.
Tax advice and opinions please
My question is IRS 15% tax bracket based on adjusted gross income, line 37 on 1040 or line 43 taxable income?
Projected retirement income for wife and I will be $72,000 annually. This would include social security, $33,600, pension income $36,150 and $2500 ordinary dividends in taxable Schwab account.
We have $350,000 in tax deferred accounts that we are not planning to draw from until age 70.
Wife and I will be paying $18,000 per year medical insurance premiums until January 2015 when we will both be 65. Can I deduct the $18,000 medical insurance premiums at 100% or will have to use 7.5% deduction on line 3 in itemized deductions?
We also have $3,000 deduction from rental real estate.
2011 total itemized deductions on form 1040 was $17,200.
Tax advice and opinions please